II 

115TH CONGRESS 

1ST SESSION S. 1313 

To reauthorize the National Flood Insurance Program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2017 

Mr. CASSIDY (for himself, Mrs. GILLIBRAND, and Mrs. CAPITO) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To reauthorize the National Flood Insurance Program, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Flood Insurance Af5 fordability and Sustainability Act of 2017’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

Sec. 4. Extension of national flood insurance program. 


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TITLE I—ENHANCING THE SOLVENCY AND SUSTAINABILITY OF 

THE NATIONAL FLOOD INSURANCE PROGRAM 

Sec. 101. Risk transfer. 

Sec. 102. Expanded flood insurance participation study. 

TITLE II—ENHANCING FLOOD INSURANCE AFFORDABILITY AND 

ACCESSIBILITY 

Sec. 201. Use of premium surcharges. 

Sec. 202. Disclosure with respect to the affordability standard. 

Sec. 203. Flood risk disclosure. 

Sec. 204. Increased cost of compliance. 

Sec. 205. Property risk data. 

Sec. 206. Mitigation provisions. 

Sec. 207. Home structure values. 

Sec. 208. Affordability vouchers. 

Sec. 209. Coverage limits. 

Sec. 210. Monthly installment payment of premiums. 

TITLE III—AGREED VALUE PILOT PROGRAM 

Sec. 301. Short title. 

Sec. 302. Definitions. 

Sec. 303. Agreed Value Flood Protection Pilot Program. 

Sec. 304. Use of agreed value flood protection to satisfy requirement to purchase flood insurance to receive a mortgage loan. 

Sec. 305. Agreed Value Flood Protection Program Reserve Fund. 

Sec. 306. Rule of construction. 

TITLE IV—PROVIDING PRIVATE MARKET ACCESS, 

ACCOUNTABILITY, AND COMPETITION 

Sec. 401. Use of private flood insurance to satisfy mandatory purchase requirement. 

Sec. 402. Provision of private flood insurance by write your own companies. 

Sec. 403. Availability of NFIP claims data. 

Sec. 404. Fees and surcharges for private flood insurance policies. 

Sec. 405. Write Your Own Risk Sharing Pilot Program. 

TITLE V—MODERNIZING FLOOD MAPPING AND FLOOD RISK 

ACCURACY 

Sec. 501. Reauthorization of National Flood Mapping Program. 

Sec. 502. Mapping standards and guidelines for nongovernmental entities. 

Sec. 503. Use of high-resolution mapping technology. 

Sec. 504. Protected areas. 

Sec. 505. Coastal flood models. 

TITLE VI—ENHANCING NATIONAL FLOOD INSURANCE PROGRAM 

TRANSPARENCY AND ACCOUNTABILITY 

Sec. 601. Deadline for approval of claims. 

Sec. 602. Flood insurance transparency, accountability, and reform. 

Sec. 603. Reports to Congress. 


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1 SEC. 3. DEFINITIONS. 

2 (a) FREESTANDING DEFINITIONS.—In this Act— 

3 (1) the term ‘‘Administrator’’ means the Ad4 ministrator of the Federal Emergency Management 

5 Agency; 

6 (2) the terms ‘‘Federal flood insurance’’ and 

7 ‘‘private flood insurance’’ have the meanings given 

8 those terms in section 102(b)(7) of the Flood Dis9 aster Protection Act of 1973 (42 U.S.C. 

10 4012a(b)(7)), as amended by section 401(a)(1) of 

11 this Act; 

12 (3) the term ‘‘mandatory purchase require13 ment’’ means the requirement under subsections (a) 

14 and (b) of section 102 of the Flood Disaster Protec15 tion Act of 1973 (42 U.S.C. 4012a), as amended by 

16 section 401 of this Act, to have flood insurance cov17 erage; 

18 (4) the term ‘‘National Flood Insurance Pro19 gram’’ means the program established under the Na20 tional Flood Insurance Act of 1968 (42 U.S.C. 4001 

21 et seq.); 

22 (5) the term ‘‘repetitive loss structure’’ has the 

23 meaning given the term in section 1370(a) of the 

24 National Flood Insurance Act of 1968 (42 U.S.C. 

25 4121(a)); 


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1 (6) the term ‘‘severe repetitive loss structure’’ 

2 has the meaning given the term in section 1366(h) 

3 of the National Flood Insurance Act of 1968 (42 

4 U.S.C. 4104c(h)); 

5 (7) the term ‘‘Standard Flood Insurance Pol6 icy’’ means the Standard Flood Insurance Policy set 

7 forth in appendix A to part 61 of title 44, Code of 

8 Federal Regulations (or any successor regulation); 

9 (8) the term ‘‘target housing’’ means a house 

10 structure that— 

11 (A) is in an area that has been identified 

12 by the Administrator as an area having special 

13 flood hazards; or 

14 (B) has incurred flood damage; 

15 (9) the term ‘‘Write Your Own company’’ 

16 means a private property insurance company that 

17 participates in the Write Your Own Program; and 

18 (10) the term ‘‘Write Your Own Program’’ 

19 means the program under which the Federal Emer20 gency Management Agency enters into a standard 

21 arrangement with private property insurance compa22 nies to— 

23 (A) sell contracts for Federal flood insur24 ance under their own business lines of insur25 ance; and 


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1 (B) adjust and pay claims arising under 

2 the contracts described in subparagraph (A). 

3 (b) NATIONAL FLOOD INSURANCE ACT.—Section 

4 1370(a) of the National Flood Insurance Act of 1968 (42 

5 U.S.C. 4121(a)) is amended— 

6 (1) in paragraph (14), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (15), by striking the period at 

9 the end and inserting a semicolon; and 

10 (3) by adding at the end the following: 

11 ‘‘(16) the term ‘claim report’ means a report 

12 created for the purpose of investigating, adjusting, 

13 or processing a claim under the national flood insur14 ance program, including such reports produced by 

15 adjusters, engineers, surveyors, salvors, architects, 

16 and certified public accountants; 

17 ‘‘(17) the term ‘private flood insurance’ has the 

18 meaning given the term in section 102(b) of the 

19 Flood Disaster Protection Act of 1973 (42 U.S.C. 

20 4012a(b)); 

21 ‘‘(18) the term ‘Write Your Own company’ 

22 means a private property insurance company that 

23 participates in the Write Your Own Program; and 

24 ‘‘(19) the term ‘Write Your Own Program’ 

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1 gency Management Agency enters into a standard 

2 arrangement with private property insurance compa3 nies to— 

4 ‘‘(A) sell contracts for Federal flood insur5 ance under their own business lines of insur6 ance; and 

7 ‘‘(B) adjust and pay claims arising under 

8 the contracts described in subparagraph (A).’’. 

9 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

10 Section 100202(a) of the Biggert-Waters Flood Insurance 

11 Reform Act of 2012 (42 U.S.C. 4004(a)) is amended by 

12 striking paragraph (5) and inserting the following: 

13 ‘‘(5) WRITE YOUR OWN PROGRAM.—The term 

14 ‘Write Your Own Program’ means the program 

15 under which the Federal Emergency Management 

16 Agency enters into a standard arrangement with pri17 vate property insurance companies to— 

18 ‘‘(A) sell contracts for Federal flood insur19 ance under their own business lines of insur20 ance; and 

21 ‘‘(B) adjust and pay claims arising under 

22 the contracts described in subparagraph (A).’’. 


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1 SEC. 4. EXTENSION OF NATIONAL FLOOD INSURANCE PRO2 GRAM. 

3 (a) FINANCING.—Section 1309(a) of the National 

4 Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is 

5 amended, in the first sentence, by striking ‘‘September 30, 

6 2017’’ and inserting ‘‘September 30, 2027’’. 

7 (b) PROGRAM EXPIRATION.—Section 1319 of the Na8 tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 

9 amended by striking ‘‘September 30, 2017’’ and inserting 

10 ‘‘September 30, 2027’’. 

11 TITLE I—ENHANCING THE SOL12 VENCY AND SUSTAINABILITY 

13 OF THE NATIONAL FLOOD IN14 SURANCE PROGRAM 

15 SEC. 101. RISK TRANSFER. 

16 Section 1345 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4081) is amended by striking subsection 

18 (e) and inserting the following: 

19 ‘‘(e) RISK TRANSFER.— 

20 ‘‘(1) IN GENERAL.—The Administrator shall 

21 annually transfer a portion of the risk associated 

22 with the flood insurance program to the private rein23 surance or capital markets— 

24 ‘‘(A) if the Administrator has determined 

25 that the rates and terms of the transfer are 

26 reasonable and appropriate; and 


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1 ‘‘(B) in an amount that is sufficient to— 

2 ‘‘(i) maintain the ability of the pro3 gram to pay claims; and 

4 ‘‘(ii) limit the exposure of the pro5 gram to potential catastrophic losses from 

6 extreme events. 

7 ‘‘(2) FORMS OF TRANSFER.—In carrying out 

8 paragraph (1), the Administrator shall consider all 

9 forms of risk transfer, including traditional reinsur10 ance, catastrophe bonds, collateralized reinsurance, 

11 resilience bonds, and other insurance-linked securi12 ties, in order to— 

13 ‘‘(A) maximize pricing competition and the 

14 diversity of sources of capital; and 

15 ‘‘(B) secure the best value for the flood in16 surance program.’’. 

17 SEC. 102. EXPANDED FLOOD INSURANCE PARTICIPATION 

18 STUDY. 

19 (a) IN GENERAL.—The Administrator, in coordina20 tion with the National Association of Insurance Commis21 sioners, shall conduct a study that proposes to address, 

22 through programmatic and regulatory changes, how to in23 crease participation in flood insurance coverage, including 

24 flood insurance purchased under the National Flood In25 surance Program and private flood insurance. 


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1 (b) OPTIONS.—In conducting the study under sub2 section (a), the Administrator shall consider the following 

3 options: 

4 (1) Expanding participation in flood insurance 

5 coverage, beyond areas having special flood hazards, 

6 to areas of moderate or minimal flood hazard risk. 

7 (2) Automatically enrolling consumers in flood 

8 insurance while providing consumers the opportunity 

9 to decline enrollment. 

10 (3) Bundled flood insurance coverage that di11 versifies risk across all or multiple-peril forms. 

12 (c) REPORT.—Not later than 18 months after the 

13 date of enactment of this Act, the Administrator shall sub14 mit a report on the study conducted under subsection (a) 

15 to— 

16 (1) the Committee on Banking, Housing, and 

17 Urban Affairs of the Senate; 

18 (2) the Committee on Appropriations of the 

19 Senate; 

20 (3) the Committee on Financial Services of the 

21 House of Representatives; and 

22 (4) the Committee on Appropriations of the 

23 House of Representatives. 


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1 TITLE II—ENHANCING FLOOD 

2 INSURANCE AFFORDABILITY 

3 AND ACCESSIBILITY 

4 SEC. 201. USE OF PREMIUM SURCHARGES. 

5 Chapter I of the National Flood Insurance Act of 

6 1968 (42 U.S.C. 4011 et seq.) is amended— 

7 (1) in section 1308A (42 U.S.C. 4015a)— 

8 (A) by redesignating subsection (c) as sub9 section (d); 

10 (B) by inserting after subsection (b) the 

11 following: 

12 ‘‘(c) USE OF SURCHARGES.—The Administrator shall 

13 use any surcharge imposed and collected under subsection 

14 (a) to help fund flood mitigation programs, including the 

15 program established under section 1366.’’; and 

16 (C) in subsection (d), as so redesignated, 

17 by striking ‘‘Subsections (a) and (b)’’ and in18 serting ‘‘Subsections (a) through (c)’’; and 

19 (2) in section 1310A(c) (42 U.S.C. 4017A(c)), 

20 by striking paragraph (4). 

21 SEC. 202. DISCLOSURE WITH RESPECT TO THE AFFORD22 ABILITY STANDARD. 

23 Section 1308(j) of the National Flood Insurance Act 

24 of 1968 (42 U.S.C. 4015(j)) is amended, in the second 

25 sentence, by inserting ‘‘and shall include in the report the 


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1 number of those exceptions as of the date on which the 

2 Administrator submits the report and the location of each 

3 policyholder insured under those exceptions, organized by 

4 county and State’’ after ‘‘of the Senate’’. 

5 SEC. 203. FLOOD RISK DISCLOSURE. 

6 (a) IN GENERAL.—Not later than 2 years after the 

7 date of enactment of this Act, the Administrator shall pro8 mulgate regulations for the disclosure of flood risk haz9 ards with respect to any residential or commercial prop10 erty that is offered for sale or lease. 

11 (b) REQUIREMENTS.—The regulations promulgated 

12 under subsection (a) shall require that, before a purchaser 

13 or lessee is obligated under any contract to purchase or 

14 lease a property, the seller or lessor, as applicable, shall— 

15 (1) provide the purchaser or lessee with a flood 

16 risk information pamphlet produced by the Adminis17 trator; 

18 (2) disclose to the purchaser or lessee the avail19 able flood risk profile of the property, including— 

20 (A) information available to the seller or 

21 lessor regarding any past— 

22 (i) flood damage to the property; or 

23 (ii) claim for loss with respect to the 

24 property under— 


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1 (I) the National Flood Insurance 

2 Program; or 

3 (II) private flood insurance; 

4 (B) information known to the seller or les5 sor regarding any designation of the property 

6 as— 

7 (i) a repetitive loss structure; or 

8 (ii) a severe repetitive loss structure; 

9 (C) any elevation certificate obtained with 

10 respect to the property that is available to the 

11 seller or lessor; and 

12 (D) any requirement that the property be 

13 covered by flood insurance because the property 

14 owner, on the date on which the property is 

15 sold or leased, or a previous owner, obtained 

16 any form of disaster assistance under the Rob17 ert T. Stafford Disaster Relief and Emergency 

18 Assistance Act (42 U.S.C. 5121 et seq.); and 

19 (3) establish a 10-day period (or a period of a 

20 different length of time if mutually agreed upon by 

21 the parties) during which the purchaser or lessor 

22 may review options for managing or mitigating flood 

23 risk with respect to the property. 

24 (c) COMPLIANCE ASSURANCE.—The regulations pro25 mulgated under subsection (a) shall require that, when a 


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1 seller or lessor has entered into a contract with an agent 

2 to sell or lease a unit of target housing, the agent shall, 

3 on behalf of the seller or lessor, ensure compliance with 

4 this section. 

5 SEC. 204. INCREASED COST OF COMPLIANCE. 

6 (a) INCREASE IN LIMITATION ON LIABILITY.—Not 

7 later than 180 days after the date of enactment of this 

8 Act, the Administrator shall amend the Standard Flood 

9 Insurance Policy to— 

10 (1) increase the limitation on liability relating 

11 to ‘‘Coverage D—Increased Cost of Compliance’’ 

12 from $30,000 to $75,000; and 

13 (2) provide that 50 percent of the amount de14 scribed in paragraph (1) shall be available to the in15 sured without regard to whether making that 

16 amount available to the insured would exceed the 

17 overall policy limit of the insured. 

18 (b) PREMIUMS; COVERAGE LIMITS.—Section 1304(b) 

19 of the National Flood Insurance Act of 1968 (42 U.S.C. 

20 4011(b)) is amended— 

21 (1) in paragraph (3), by striking ‘‘compliance 

22 with the land use and control measures.’’ and insert23 ing ‘‘the implementation of such measures; and’’; 


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1 (2) in paragraph (4), by redesignating subpara2 graphs (A) through (D) as clauses (i) through (iv), 

3 respectively, and adjusting the margins accordingly; 

4 (3) by redesignating paragraphs (1) through 

5 (4) as subparagraphs (A) through (D), respectively, 

6 and adjusting the margins accordingly; 

7 (4) in the matter preceding subparagraph (A), 

8 as so redesignated, by striking ‘‘The national’’ and 

9 inserting the following: 

10 ‘‘(1) IN GENERAL.—The national’’; and 

11 (5) by striking the flush text following para12 graph (1)(D)(iv), as so redesignated, and inserting 

13 the following: 

14 ‘‘(2) PREMIUMS.—The Administrator shall 

15 charge a premium on each insured of not more than 

16 $75 per policy to provide cost of compliance cov17 erage in accordance with the provisions of this sub18 section. 

19 ‘‘(3) COVERAGE LIMITS.—Any amount of cov20 erage that is provided under this subsection with re21 spect to a property is in addition to, and shall not 

22 be considered for the purposes of, any limitation on 

23 coverage that is applicable to the property under sec24 tion 1306(b).’’. 


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1 SEC. 205. PROPERTY RISK DATA. 

2 Chapter I of the National Flood Insurance Act of 

3 1968 (42 U.S.C. 4011 et seq.) is amended by adding at 

4 the end the following: 

5 ‘‘SEC. 1326. PREMIUM CREDIT FOR SUBMITTING PROPERTY 

6 RISK DATA. 

7 ‘‘(a) IN GENERAL.—Subject to subsection (b), the 

8 Administrator may offer a policyholder under the national 

9 flood insurance program a premium credit of not more 

10 than $500 if the policyholder submits data and informa11 tion that is necessary for the Administrator to determine 

12 the level of risk of flood with respect to the property cov13 ered by the policy as of the date on which the policyholder 

14 submits the data and information to the Administrator. 

15 ‘‘(b) LIMITATION.—The Administrator may offer a 

16 premium credit under subsection (a) only once with re17 spect to any building.’’. 

18 SEC. 206. MITIGATION PROVISIONS. 

19 (a) MITIGATION STRATEGIES.—Section 1361(d)(1) 

20 of the National Flood Insurance Act of 1968 (42 U.S.C. 

21 4102(d)(1)) is amended— 

22 (1) in subparagraph (A), by striking ‘‘and’’ at 

23 the end; 

24 (2) in subparagraph (B), by striking ‘‘and’’ at 

25 the end; and 


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1 (3) by inserting after subparagraph (B) the fol2 lowing: 

3 ‘‘(C) with respect to buildings in dense 

4 urban environments, methods that can be de5 ployed on a block or neighborhood scale; and 

6 ‘‘(D) elevation of mechanical systems; 

7 and’’. 

8 (b) MITIGATION CREDIT.—Section 1308(k) of the 

9 National Flood Insurance Act of 1968 (42 U.S.C. 

10 4015(k)) is amended— 

11 (1) by striking ‘‘shall take into account’’ and 

12 inserting ‘‘shall— 

13 ‘‘(1) take into account’’; 

14 (2) in paragraph (1), as so designated, by strik15 ing the period at the end and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(2) offer a reduction of the risk premium rate 

18 charged to a policyholder in an amount that is not 

19 less than 10 percent of that rate if the policyholder 

20 implements any mitigation method described in 

21 paragraph (1).’’. 

22 (c) COVERAGE FOR COOPERATIVES.— 

23 (1) IN GENERAL.—Section 1306 of the Na24 tional Flood Insurance Act of 1968 (42 U.S.C. 


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1 4013) is amended by adding at the end the fol2 lowing: 

3 ‘‘(e) COOPERATIVES.— 

4 ‘‘(1) DEFINITION.—In this subsection, the term 

5 ‘cooperative building’ has the meaning given the 

6 term in section 1312(d). 

7 ‘‘(2) EQUAL TREATMENT WITH CONDOMIN8 IUMS.—Notwithstanding any other provision of law, 

9 an owner of a share of a cooperative building shall 

10 be eligible to purchase flood insurance coverage 

11 under the national flood insurance program on the 

12 same terms as a condominium owner.’’. 

13 (2) PAYMENT OF CLAIMS.—Section 1312 of the 

14 National Flood Insurance Act of 1968 (42 U.S.C. 

15 4019) is amended— 

16 (A) in subsection (c)— 

17 (i) in the subsection heading, by in18 serting ‘‘AND COOPERATIVE’’ after ‘‘CON19 DOMINIUM’’; 

20 (ii) by inserting ‘‘or owners of a share 

21 of a cooperative building’’ after ‘‘condo22 minium owners’’; and 

23 (iii) by inserting ‘‘or cooperative asso24 ciation’’ after ‘‘condominium association’’ 

25 each place that term appears; and 


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1 (B) by adding at the end the following: 

2 ‘‘(d) DEFINITIONS.—In this section, the terms ‘coop3 erative association’ and ‘cooperative building’ have the 

4 meanings given the terms by the Administrator.’’. 

5 SEC. 207. HOME STRUCTURE VALUES. 

6 (a) STUDY AND REPORT.— 

7 (1) STUDY.—The Administrator shall conduct a 

8 study, the purpose of which shall be to— 

9 (A) evaluate best practices in the insurance 

10 industry for risk rating and classification, in11 cluding practices that consider replacement cost 

12 value when estimating premium rates; and 

13 (B) with respect to the estimates made by 

14 the Administrator under section 1307(a)(1) of 

15 the National Flood Insurance Act of 1968 (42 

16 U.S.C. 4014(a)(1)), as in effect on the day be17 fore the date of enactment of this Act— 

18 (i) assess options, methods, and strat19 egies for including replacement cost value 

20 in the estimates; 

21 (ii) identify recommendations for in22 cluding replacement cost value in the esti23 mates; 

24 (iii) identify an appropriate method25 ology by which replacement cost value 


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1 could be incorporated into the estimates; 

2 and 

3 (iv) develop a feasible implementation 

4 plan and projected timeline for including 

5 replacement cost value in the estimates. 

6 (2) REPORT.—Not later than 18 months after 

7 the date of enactment of this Act, the Administrator 

8 shall submit to the Committee on Banking, Housing, 

9 and Urban Affairs of the Senate and the Committee 

10 on Financial Services of the House of Representa11 tives a report that contains— 

12 (A) the results of the study conducted 

13 under paragraph (1) (referred to in this para14 graph as ‘‘the study’’); 

15 (B) an analysis of the recommendations 

16 made by the study and the impacts that those 

17 recommendations would have on the National 

18 Flood Insurance Program, including cost con19 siderations; 

20 (C) a description of actions taken by the 

21 Administrator to implement the recommenda22 tions made by the study; 

23 (D) a list of any recommendations made 

24 by the study that, as of the date on which the 

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1 trator has deferred or upon which the Adminis2 trator has not acted; and 

3 (E) an explanatory statement with respect 

4 to each recommendation described in subpara5 graph (D). 

6 (b) IMPLEMENTATION.— 

7 (1) IN GENERAL.—Section 1307(a)(1)(A) of the 

8 National Flood Insurance Act of 1968 (42 U.S.C. 

9 4014(a)(1)(A)) is amended— 

10 (A) in clause (i), by striking ‘‘and’’ at the 

11 end; 

12 (B) in clause (ii), by striking ‘‘, and’’ and 

13 inserting ‘‘; and’’; and 

14 (C) by adding at the end the following: 

15 ‘‘(iii) the replacement cost value of an 

16 insured structure when determining under17 insurance loading factors, consistent with 

18 the requirements of section 1308(e) and 

19 taking into account the results of the study 

20 conducted under section 206(a)(1) of the 

21 Flood Insurance Affordability and Sustain22 ability Act of 2017; and’’. 

23 (2) EFFECTIVE DATE.—The amendments made 

24 by paragraph (1) shall take effect on the date that 


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1 is 1 year after the date on which the Administrator 

2 submits the report under subsection (a)(2). 

3 SEC. 208. AFFORDABILITY VOUCHERS. 

4 Chapter I of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4011 et seq.), as amended by section 205 

6 of this Act, is further amended by adding at the end the 

7 following: 

8 ‘‘SEC. 1327. AFFORDABILITY VOUCHERS. 

9 ‘‘(a) DEFINITIONS.—In this section— 

10 ‘‘(1) the term ‘area median income’ means, with 

11 respect to an area, the area median income for the 

12 area, as defined for the applicable year by the Sec13 retary of Housing and Urban Development; 

14 ‘‘(2) the term ‘eligible household’ means an 

15 owner-occupied household— 

16 ‘‘(A) that has a total household income 

17 that is less than 165 percent of the area me18 dian income for the area in which the household 

19 is located; 

20 ‘‘(B) for which the cost of flood insurance 

21 premiums, surcharges, and fees in a year would 

22 result in excess costs for the household for that 

23 year; and 

24 ‘‘(C) that— 


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1 ‘‘(i) renews an existing flood insur2 ance policy under the national flood insur3 ance program for building coverage for a 

4 property that is in an area having special 

5 flood hazards; or 

6 ‘‘(ii) purchases a flood insurance pol7 icy under the national flood insurance pro8 gram for building coverage for an existing 

9 structure that was owned and occupied by 

10 the household before the date on which the 

11 building was determined to be located in 

12 an area having special flood hazards due to 

13 a revision of, or an update to, a floodplain 

14 area or flood risk zone that is identified, 

15 delineated, or established by the Adminis16 trator; 

17 ‘‘(3) the term ‘excess costs’ means— 

18 ‘‘(A) for a household that has a total 

19 household income that is greater than 80 per20 cent of the area median income for the area in 

21 which the household is located, the amount by 

22 which— 

23 ‘‘(i) the sum of— 

24 ‘‘(I) the total amount of pre25 miums, surcharges, and fees paid by a 


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1 household in a year with respect to a 

2 flood insurance policy provided under 

3 this title; and 

4 ‘‘(II) the housing expenses in5 curred by the household in that year; 

6 exceeds 

7 ‘‘(ii) 40 percent of the total household 

8 income for the household in that year; and 

9 ‘‘(B) for a household that has a total 

10 household income that is not greater than 80 

11 percent of the area median income for the area 

12 in which the household is located, the amount 

13 by which the flood insurance premiums, sur14 charges, and fees for a flood insurance policy 

15 provided under this title in a year for the 

16 household exceeds 1 percent of the coverage 

17 limit of that flood insurance policy under sec18 tion 1306(b); and 

19 ‘‘(4) the term ‘housing expenses’ means, with 

20 respect to a household, the total amount that the 

21 household spends in a year on— 

22 ‘‘(A) mortgage payments; 

23 ‘‘(B) property taxes; and 

24 ‘‘(C) homeowners insurance. 


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1 ‘‘(b) VOUCHERS.—The Administrator shall, when the 

2 Administrator determines appropriate, provide a voucher 

3 to an eligible household in accordance with subsection (c) 

4 to use toward the payment of flood insurance premiums, 

5 surcharges, and fees incurred by the household in the year 

6 for which the voucher is provided. 

7 ‘‘(c) CALCULATION.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 the Administrator shall provide a voucher to an eli10 gible household as follows: 

11 ‘‘(A) An eligible household that has a total 

12 household income that is not greater than 80 

13 percent of area median income shall receive a 

14 voucher in an amount that is equal to 100 per15 cent of the excess costs incurred by the house16 hold for the year preceding the year in which 

17 the eligible household receives the voucher. 

18 ‘‘(B) An eligible household that has a total 

19 household income that is greater than 80 per20 cent of area median income and not greater 

21 than 120 percent of area median income shall 

22 receive a voucher in an amount that is equal to 

23 80 percent of the excess costs incurred by the 

24 household for the year preceding the year in 


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1 which the eligible household receives the vouch2 er. 

3 ‘‘(C) An eligible household that has a total 

4 household income that is greater than 120 per5 cent of area median income and less than 165 

6 percent of area median income shall receive a 

7 voucher in an amount that is equal to 60 per8 cent of the excess costs for the year preceding 

9 the year in which the eligible household receives 

10 the voucher. 

11 ‘‘(2) LIMITATION.—The Administrator may not 

12 provide a voucher to an eligible household in an 

13 amount that is more than the total amount that the 

14 eligible household paid in premiums, surcharges, and 

15 fees for a flood insurance policy provided under this 

16 title during the year preceding the year in which the 

17 voucher is provided.’’. 

18 SEC. 209. COVERAGE LIMITS. 

19 (a) IN GENERAL.—Section 1306 of the National 

20 Flood Insurance Act of 1968 (42 U.S.C. 4013) is amend21 ed— 

22 (1) in subsection (b)— 

23 (A) in the matter preceding paragraph (1), 

24 by striking ‘‘In addition to any other terms and 


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1 conditions under subsection (a), such regula2 tions’’ and inserting ‘‘The Administrator’’; 

3 (B) in paragraph (2)— 

4 (i) by striking ‘‘shall be made’’ and 

5 inserting ‘‘may be made’’; and 

6 (ii) by striking ‘‘$250,000’’ and in7 serting ‘‘the baseline amount’’; 

8 (C) in paragraph (3)— 

9 (i) by striking ‘‘shall be made’’ and 

10 inserting ‘‘may be made’’; and 

11 (ii) by striking ‘‘$100,000’’ and in12 serting ‘‘50 percent of the baseline 

13 amount’’; and 

14 (D) in paragraph (4)— 

15 (i) by striking ‘‘shall be made’’ each 

16 place that term appears and inserting 

17 ‘‘may be made’’; and 

18 (ii) by striking ‘‘$500,000’’ each place 

19 that term appears and inserting ‘‘200 per20 cent of the baseline amount’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(e) DEFINITION.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

24 in this section, the term ‘baseline amount’, with re25 spect to a property, means the maximum original 


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1 principal obligation of a conventional mortgage that 

2 may be purchased by the Federal National Mortgage 

3 Association in the area in which the property as lo4 cated, as established under section 302(b)(2) of the 

5 Federal National Mortgage Association Charter Act 

6 (12 U.S.C. 1717(b)(2)). 

7 ‘‘(2) CLARIFICATION.—If, after the date of en8 actment of this subsection, the baseline amount, as 

9 defined in paragraph (1), decreases as compared 

10 with the baseline amount in effect on the day before 

11 the date of enactment of this subsection, the base12 line amount that was in effect on the day before the 

13 date of enactment of this subsection shall be deemed 

14 to be the baseline amount for the purposes of para15 graphs (2), (3), and (4) of subsection (b).’’. 

16 (b) AUTHORITY OF ADMINISTRATOR TO SELL POLI17 CIES.—The Administrator may sell a policy for flood in18 surance under the National Flood Insurance Program that 

19 meets the requirements of paragraphs (2), (3), and (4) 

20 of section 1306(b) of the National Flood Insurance Act 

21 of 1968 (42 U.S.C. 4013(b)), as amended by subsection 

22 (a), without regard to— 

23 (1) section 61.6 of title 44, Code of Federal 

24 Regulations, as in effect on the day before the date 

25 of enactment of this Act; or 


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1 (2) any other provision of law. 

2 SEC. 210. MONTHLY INSTALLMENT PAYMENT OF PRE3 MIUMS. 

4 Section 1308(g) of the National Flood Insurance Act 

5 of 1968 (42 U.S.C. 4015(g)) is amended— 

6 (1) by striking ‘‘With respect to’’ and inserting 

7 the following: 

8 ‘‘(1) ANNUAL OR MONTHLY OPTION.—Subject 

9 to paragraph (2), with respect to’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(2) MONTHLY INSTALLMENT.—With respect 

12 to a policyholder that opts under paragraph (1) to 

13 pay premiums on a monthly basis, the Administrator 

14 may charge the policyholder an annual fee of not 

15 more than $15. 

16 ‘‘(3) EXEMPTION FROM RULE MAKING; PILOT

17 PROGRAM.—During the period beginning on the date 

18 of enactment of this paragraph and ending on the 

19 date on which the Administrator promulgates regu20 lations carrying out paragraph (1), the Adminis21 trator may, notwithstanding any other provision of 

22 law— 

23 ‘‘(A) adopt policies and procedures to carry 

24 out that paragraph without— 


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1 ‘‘(i) undergoing notice and comment 

2 rule making under section 553 of title 5, 

3 United States Code; or 

4 ‘‘(ii) conducting regulatory analyses 

5 otherwise required by statute, regulation, 

6 or Executive order; or 

7 ‘‘(B) carry out that paragraph by estab8 lishing a pilot program that gradually imple9 ments the requirements of that paragraph.’’. 

10 TITLE III—AGREED VALUE 

11 PILOT PROGRAM 

12 SEC. 301. SHORT TITLE. 

13 This title may be cited as the ‘‘Agreed Value Flood 

14 Protection Program Act of 2017’’. 

15 SEC. 302. DEFINITIONS. 

16 In this title— 

17 (1) the term ‘‘agreed value flood protection pol18 icy’’ means a flood protection policy providing that, 

19 if a flood occurs, the National Flood Insurance Pro20 gram will make payments according to agreed sched21 ules of payments determined by flood height in cov22 ered structures participating in the Program; 

23 (2) the term ‘‘catastrophic loss year’’ means a 

24 year in which the combined ratio is not less than 

25 130 percent; 


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1 (3) the term ‘‘combined ratio’’ means the 

2 quotient obtained when the sum obtained by adding 

3 the losses paid under the National Flood Insurance 

4 Program in a year and the expenses of the National 

5 Flood Insurance Program in that year is divided by 

6 the total amount of premiums collected under the 

7 National Flood Insurance Program in that year; 

8 (4) the term ‘‘covered agent’’ means any insur9 ance agent, producer, or intermediary licensed by a 

10 State; 

11 (5) the term ‘‘covered structure’’ means real 

12 property eligible for flood insurance coverage under 

13 the National Flood Insurance Program; 

14 (6) the term ‘‘eligible participant’’ means a per15 son that has demonstrated ownership of a covered 

16 structure; 

17 (7) the term ‘‘flood height’’ means the distance 

18 between the lowest adjacent grade and the high 

19 water mark of a flood on the first floor of a covered 

20 structure, as measured or as determined by other 

21 appropriate methods; 

22 (8) the term ‘‘Program’’ means the Agreed 

23 Value Flood Protection Program established under 

24 section 303(a); and 


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1 (9) the term ‘‘Reserve Fund’’ means the Agreed 

2 Value Flood Protection Program Reserve Fund es3 tablished under section 305(a). 

4 SEC. 303. AGREED VALUE FLOOD PROTECTION PILOT PRO5 GRAM. 

6 (a) IN GENERAL.—The Administrator may establish 

7 and carry out an optional Agreed Value Flood Protection 

8 Pilot Program for the 8-year period beginning on the date 

9 of enactment of this Act, or during the period beginning 

10 on the date of enactment of this Act and ending on the 

11 date on which authorization for the National Flood Insur12 ance Program expires, whichever is shorter, under 

13 which— 

14 (1) an eligible participant may purchase an 

15 agreed value flood protection policy to protect 

16 against losses resulting from physical damage to, or 

17 loss of, a covered structure, including any personal 

18 property related thereto, owned by the eligible par19 ticipant arising from a flood occurring in the United 

20 States during the period for which the policy is in 

21 force; 

22 (2) a covered agent may issue an agreed value 

23 flood protection policy to an eligible participant; and 

24 (3) an eligible participant may not be denied 

25 the opportunity to purchase an agreed value flood 


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1 protection policy solely on the basis of the geo2 graphic location of the eligible participant. 

3 (b) ELIGIBILITY.—In order to purchase an agreed 

4 value flood protection policy, an eligible participant shall 

5 demonstrate that the value of the covered structure to be 

6 covered under the policy, including any contents within the 

7 covered structure, is not less than the coverage amount 

8 of the policy. 

9 (c) ISSUANCE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), any covered agent may issue an agreed 

12 value flood protection policy to an eligible partici13 pant under the Program. 

14 (2) EXCEPTION.—A covered agent may not 

15 issue a policy under paragraph (1) if the structure 

16 with respect to which the policy would apply is in17 sured under the National Flood Insurance Program. 

18 (d) BROCHURE.— 

19 (1) IN GENERAL.—The Administrator shall 

20 publish a brochure that compares the premium rates 

21 charged under the National Flood Insurance Pro22 gram with the premium rates charged under the 

23 Program. 

24 (2) COVERED AGENTS.— 


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1 (A) IN GENERAL.—A covered agent shall 

2 explain to an eligible participant the risks asso3 ciated with an agreed value flood protection pol4 icy before the eligible participant purchases a 

5 policy. 

6 (B) DELIVERY.—If a covered agent deliv7 ers the brochure published under paragraph (1) 

8 to an eligible participant before the eligible par9 ticipant purchases an agreed value flood protec10 tion policy, the delivery shall constitute prima 

11 facie evidence that the covered agent has satis12 fied the requirement under subparagraph (A). 

13 (e) REPORT.—Not later than 1 year after the date 

14 on which the Program ends, the Administrator shall sub15 mit to Congress a report— 

16 (1) containing data that was collected during 

17 the administration of the Program relating to under18 insurance factors, claims statistics, claims disputes 

19 (including how such disputes were adjudicated), and 

20 actuarial rate reviews; and 

21 (2) that compares premium rates charged under 

22 the Program with comparable premium rates 

23 charged under the standard flood insurance policy, 

24 controlling for comparable risk factors. 


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1 SEC. 304. USE OF AGREED VALUE FLOOD PROTECTION TO 

2 SATISFY REQUIREMENT TO PURCHASE 

3 FLOOD INSURANCE TO RECEIVE A MORT4 GAGE LOAN. 

5 An agreed value flood protection policy shall satisfy 

6 the mandatory purchase requirement. 

7 SEC. 305. AGREED VALUE FLOOD PROTECTION PROGRAM 

8 RESERVE FUND. 

9 (a) ESTABLISHMENT OF AN AGREED VALUE FLOOD

10 PROTECTION RESERVE FUND.—In carrying out the Pro11 gram, the Administrator shall establish in the Treasury 

12 of the United States an Agreed Value Flood Protection 

13 Program Reserve Fund, which shall be— 

14 (1) separate from any other accounts or funds 

15 available to the Administrator; and 

16 (2) available for meeting the expected future 

17 obligations of the Program, including— 

18 (A) the payment of claims during cata19 strophic loss years; and 

20 (B) the repayment of amounts outstanding 

21 under any note or other obligation issued by the 

22 Administrator under section 1309(a) of the Na23 tional Flood Insurance Act of 1968 (42 U.S.C. 

24 4016(a)). 

25 (b) RESERVE RATIO.—Subject to the phase-in re26 quirements under subsection (d), the Reserve Fund shall 


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1 maintain a balance that, together with any risk financing 

2 covering the Program, is an amount that is equal to— 

3 (1) 1.5 percent of the sum of the total potential 

4 loss exposure of all outstanding agreed value flood 

5 protection policies in force during the prior fiscal 

6 year; or 

7 (2) a higher percentage of the sum described in 

8 paragraph (1) that the Administrator determines to 

9 be appropriate, taking into consideration any cir10 cumstance that may raise a significant risk of sub11 stantial future losses to the Reserve Fund. 

12 (c) MAINTENANCE OF RESERVE RATIO.— 

13 (1) IN GENERAL.—The Administrator may es14 tablish, increase, or decrease the amount of aggre15 gate annual policy charges to be collected for any 

16 fiscal year that are necessary in order to— 

17 (A) maintain the amount required under 

18 subsection (b); and 

19 (B) if the balance of the Reserve Fund is 

20 an amount that is less than the amount re21 quired under subsection (b), obtain the amount 

22 required under subsection (b). 

23 (2) CONSIDERATIONS.—In exercising the au24 thority under paragraph (1), the Administrator shall 

25 consider— 


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1 (A) the expected operating expenses of the 

2 Reserve Fund; 

3 (B) the covered loss expenditures under 

4 the Program; 

5 (C) any investment income generated 

6 under the Program; and 

7 (D) any other factor that the Adminis8 trator determines appropriate. 

9 (3) LIMITATION.—Notwithstanding any other 

10 provision of law or any agreement entered into by 

11 the Administrator, the Administrator shall ensure 

12 that all amounts attributable to the establishment or 

13 increase of annual policy charges under paragraph 

14 (1) are transferred to the Administrator for deposit 

15 into the Reserve Fund to be available for meeting 

16 the expected future obligations of the Program, as 

17 described in subsection (a)(2). 

18 (d) PHASE-IN REQUIREMENTS.—The phase-in re19 quirements under this subsection are as follows: 

20 (1) IN GENERAL.—Beginning in fiscal year 

21 2018, and in each successive fiscal year thereafter 

22 until the amount required under subsection (b) is 

23 obtained, the Administrator shall deposit in the Re24 serve Fund an amount that is not less than 10 per25 cent of the amount required under subsection (b). 


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1 (2) AMOUNT SATISFIED.—Except as provided 

2 in paragraph (3), beginning on the date on which 

3 the amount required under subsection (b) is ob4 tained, the Administrator shall not be required to 

5 set aside any amounts for the Reserve Fund. 

6 (3) EXCEPTION.—If, at any time during any 

7 fiscal year after the amount required under sub8 section (b) is obtained, the amount in the Reserve 

9 Fund is less than the amount required under sub10 section (b), the Administrator shall deposit in the 

11 Reserve Fund during that fiscal year an amount 

12 that is not less than the lesser of— 

13 (A) the difference between the amount re14 quired under subsection (b) and the amount in 

15 the Reserve Fund; or 

16 (B) 10 percent of the amount required 

17 under subsection (b). 

18 (e) LIMITATION ON RESERVE RATIO.—If, in any fis19 cal year, the Administrator determines that the amount 

20 required under subsection (b) cannot be obtained, the Ad21 ministrator shall submit to Congress a report that— 

22 (1) describes and details the specific concerns 

23 of the Administrator regarding the consequences of 

24 that amount not being obtained; 


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1 (2) demonstrates how the consequences de2 scribed in paragraph (1) would harm the long-term 

3 financial soundness of the Program; and 

4 (3) indicates the maximum attainable amount 

5 for that fiscal year. 

6 (f) INVESTMENT.—The Secretary of the Treasury 

7 shall invest such amounts of the Reserve Fund as the Sec8 retary determines advisable in obligations issued or guar9 anteed by the United States. 

10 SEC. 306. RULE OF CONSTRUCTION. 

11 Nothing in this title may be construed to— 

12 (1) limit the National Flood Insurance Pro13 gram, including the ability of a person to purchase 

14 flood insurance under the National Flood Insurance 

15 Program to satisfy the mandatory purchase require16 ment; or 

17 (2) require a person to participate in the Pro18 gram. 

19 TITLE IV—PROVIDING PRIVATE 

20 MARKET ACCESS, ACCOUNT21 ABILITY, AND COMPETITION 

22 SEC. 401. USE OF PRIVATE FLOOD INSURANCE TO SATISFY 

23 MANDATORY PURCHASE REQUIREMENT. 

24 (a) IN GENERAL.— 

25 (1) MANDATORY PURCHASE REQUIREMENT.— 


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1 (A) AMOUNT AND TERM OF COVERAGE.— 

2 Section 102 of the Flood Disaster Protection 

3 Act of 1973 (42 U.S.C. 4012a) is amended by 

4 striking ‘‘SEC. 102. (a)’’ and all that follows 

5 through the end of subsection (a) and inserting 

6 the following: 

7 ‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 on and after the date that is 60 days after the date 

10 of enactment of this Act, no Federal officer or agen11 cy may approve any financial assistance for acquisi12 tion or construction purposes for use in any area 

13 that has been identified by the Administrator as an 

14 area having special flood hazards and in which the 

15 sale of flood insurance has been made available 

16 under the National Flood Insurance Act of 1968 (42 

17 U.S.C. 4001 et seq.), unless the building or mobile 

18 home and any personal property to which the finan19 cial assistance relates is covered by flood insurance. 

20 ‘‘(2) AMOUNT AND TERM.— 

21 ‘‘(A) AMOUNT GENERALLY.—The amount 

22 of flood insurance required under paragraph 

23 (1)— 

24 ‘‘(i) in the case of Federal flood insur25 ance, shall be not less than the lesser of— 


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1 ‘‘(I) 80 percent of the purchase 

2 price of the property; 

3 ‘‘(II) the development or project 

4 cost of the building, mobile home, or 

5 personal property (less estimated land 

6 cost); 

7 ‘‘(III) the maximum limit of Fed8 eral flood insurance coverage made 

9 available with respect to the particular 

10 type of property; or 

11 ‘‘(IV) for multi-unit structures 

12 only, the outstanding principal bal13 ance of the loan; or 

14 ‘‘(ii) in the case of private flood insur15 ance, shall be not less than the lesser of— 

16 ‘‘(I) 80 percent of the purchase 

17 price of the property; 

18 ‘‘(II) the development or project 

19 cost of the building, mobile home, or 

20 personal property (less estimated land 

21 cost); 

22 ‘‘(III) the maximum limit of Fed23 eral flood insurance coverage made 

24 available with respect to the particular 

25 type of property; or 


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1 ‘‘(IV) for multi-unit structures 

2 only, the outstanding principal bal3 ance of the loan. 

4 ‘‘(B) LOANS AND INSURED AND GUARAN5 TEED LOANS.—If the financial assistance de6 scribed in paragraph (1) is in the form of a 

7 loan or an insurance or guaranty of a loan, 

8 flood insurance need not be required beyond the 

9 term of the loan. 

10 ‘‘(C) TERM GENERALLY.—The require11 ment of maintaining flood insurance under 

12 paragraph (1) shall apply during the life of the 

13 property, regardless of transfer of ownership of 

14 the property.’’. 

15 (B) MORTGAGE LOANS.—Section 102(b) of 

16 the Flood Disaster Protection Act of 1973 (42 

17 U.S.C. 4012a(b)) is amended— 

18 (i) by striking paragraphs (1) through 

19 (5) and inserting the following: 

20 ‘‘(1) REGULATED LENDING INSTITUTIONS.— 

21 ‘‘(A) IN GENERAL.—Each Federal entity 

22 for lending regulation (after consultation and 

23 coordination with the Financial Institutions Ex24 amination Council established under section 

25 1004 of the Federal Financial Institutions ExVerDate Sep 11 2014 00:19 Jun 12, 2017 Jkt 069200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S1313.IS S1313

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1 amination Council Act of 1974 (12 U.S.C. 

2 3303)) shall by regulation direct regulated lend3 ing institutions not to make, increase, extend, 

4 or renew any loan secured by improved real es5 tate or a mobile home located or to be located 

6 in an area that has been identified by the Ad7 ministrator as an area having special flood haz8 ards and in which flood insurance has been 

9 made available under the National Flood Insur10 ance Act of 1968 (42 U.S.C. 4001 et seq.), un11 less the building or mobile home and any per12 sonal property securing the loan is covered for 

13 the term of the loan by flood insurance in an 

14 amount described in subparagraph (B). 

15 ‘‘(B) AMOUNT.—The amount of flood in16 surance required under subparagraph (A)— 

17 ‘‘(i) in the case of Federal flood insur18 ance, shall be not less than the lesser of— 

19 ‘‘(I) 80 percent of the purchase 

20 price of the property; 

21 ‘‘(II) the maximum limit of Fed22 eral flood insurance coverage made 

23 available with respect to the particular 

24 type of property; or 


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1 ‘‘(III) for multi-unit structures 

2 only, the outstanding principal bal3 ance of the loan; or 

4 ‘‘(ii) in the case of private flood insur5 ance, shall be not less than the lesser of— 

6 ‘‘(I) 80 percent of the purchase 

7 price of the property; 

8 ‘‘(II) the maximum limit of Fed9 eral flood insurance coverage made 

10 available with respect to the particular 

11 type of property; or 

12 ‘‘(III) for multi-unit structures 

13 only, the outstanding principal bal14 ance of the loan. 

15 ‘‘(2) FEDERAL AGENCY LENDERS.— 

16 ‘‘(A) IN GENERAL.— 

17 ‘‘(i) INSURANCE REQUIRED.—A Fed18 eral agency lender may not make, increase, 

19 extend, or renew any loan secured by im20 proved real estate or a mobile home located 

21 or to be located in an area that has been 

22 identified by the Administrator as an area 

23 having special flood hazards and in which 

24 flood insurance has been made available 

25 under the National Flood Insurance Act of 


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1 1968 (42 U.S.C. 4001 et seq.), unless the 

2 building or mobile home and any personal 

3 property securing the loan is covered for 

4 the term of the loan by flood insurance in 

5 accordance with paragraph (1). 

6 ‘‘(ii) REGULATIONS.— 

7 ‘‘(I) IN GENERAL.—Each Federal 

8 agency lender may issue any regula9 tions necessary to carry out this para10 graph. 

11 ‘‘(II) CONSISTENCY.—Any regu12 lations issued under subclause (I) 

13 shall be consistent with and substan14 tially identical to any regulations 

15 issued under paragraph (1). 

16 ‘‘(B) REQUIREMENT TO ACCEPT FLOOD IN17 SURANCE.—Each Federal agency lender shall 

18 accept flood insurance as satisfaction of the 

19 flood insurance coverage requirement under 

20 subparagraph (A)(i) if the flood insurance cov21 erage meets the requirements for coverage 

22 under that subparagraph. 

23 ‘‘(3) GOVERNMENT-SPONSORED ENTERPRISES

24 FOR HOUSING.— 


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1 ‘‘(A) IMPLEMENTATION OF PROCE2 DURES.— 

3 ‘‘(i) REQUIREMENT.—The Federal 

4 National Mortgage Association and the 

5 Federal Home Loan Mortgage Corporation 

6 shall implement procedures reasonably de7 signed to ensure that, for any loan de8 scribed in clause (ii) that is purchased or 

9 guaranteed by such entity, the building or 

10 mobile home and any personal property se11 curing the loan is covered for the term of 

12 the loan by flood insurance in the amount 

13 provided in paragraph (1)(B). 

14 ‘‘(ii) SECURED LOAN.—A loan de15 scribed in this clause is a loan secured by 

16 improved real estate or a mobile home lo17 cated in an area— 

18 ‘‘(I) that has been identified, at 

19 the time of the origination of the loan 

20 or at any time during the term of the 

21 loan, by the Administrator as an area 

22 having special flood hazards; and 

23 ‘‘(II) in which flood insurance is 

24 made available under the National 


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1 Flood Insurance Act of 1968 (42 

2 U.S.C. 4001 et seq.). 

3 ‘‘(B) ACCEPTABLE INSURANCE.—Subject 

4 to subparagraph (C), the Federal National 

5 Mortgage Association and the Federal Home 

6 Loan Mortgage Corporation shall accept flood 

7 insurance as satisfaction of the flood insurance 

8 coverage requirement under paragraph (1) if 

9 the flood insurance coverage provided meets the 

10 requirements for coverage under that paragraph 

11 and any requirements established by the Fed12 eral National Mortgage Association or the Fed13 eral Home Loan Corporation, respectively, re14 lating to the financial strength of private insur15 ance companies from which the Federal Na16 tional Mortgage Association or the Federal 

17 Home Loan Mortgage Corporation will accept 

18 private flood insurance. 

19 ‘‘(C) RELATION TO STATE LAW.—A re20 quirement described in subparagraph (B) may 

21 not affect or conflict with any State law, regula22 tion, or procedure concerning the regulation of 

23 the business of insurance. 

24 ‘‘(4) APPLICABILITY.— 


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1 ‘‘(A) EXISTING COVERAGE.—Except as 

2 provided in subparagraph (B), paragraph (1) 

3 shall apply on the date of enactment of the Rie4 gle Community Development and Regulatory 

5 Improvement Act of 1994 (12 U.S.C. 4701 et 

6 seq.). 

7 ‘‘(B) NEW COVERAGE.—Paragraphs (2) 

8 and (3) shall apply only with respect to any 

9 loan made, increased, extended, or renewed 

10 after the expiration of the 1-year period begin11 ning on the date of enactment of the Riegle 

12 Community Development and Regulatory Im13 provement Act of 1994 (12 U.S.C. 4701 et 

14 seq.). Paragraph (1) shall apply with respect to 

15 any loan made, increased, extended, or renewed 

16 by any lender supervised by the Farm Credit 

17 Administration only after the expiration of the 

18 period under this subparagraph. 

19 ‘‘(C) CONTINUED EFFECT OF REGULA20 TIONS.—Notwithstanding any other provision of 

21 this subsection, the regulations to carry out 

22 paragraph (1), as in effect immediately before 

23 the date of enactment of the Riegle Community 

24 Development and Regulatory Improvement Act 

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1 tinue to apply until the regulations issued to 

2 carry out paragraph (1), as amended by section 

3 522(a) of such Act, take effect. 

4 ‘‘(5) RULE OF CONSTRUCTION.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B), nothing in this subsection shall be 

7 construed to supersede or limit the authority of 

8 a Federal entity for lending regulation, the 

9 Federal Housing Finance Agency, a Federal 

10 agency lender, the Federal National Mortgage 

11 Association, or the Federal Home Loan Mort12 gage Corporation to establish requirements re13 lating to the financial strength of private insur14 ance companies from which the entity or agency 

15 will accept private flood insurance. 

16 ‘‘(B) RELATION TO STATE LAW.—A re17 quirement described in subparagraph (A) may 

18 not affect or conflict with any State law, regula19 tion, or procedure concerning the regulation of 

20 the business of insurance.’’; and 

21 (ii) by striking paragraph (7) and in22 serting the following: 

23 ‘‘(7) DEFINITIONS.—In this section: 

24 ‘‘(A) FEDERAL FLOOD INSURANCE.—The 

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1 ance policy made available under the National 

2 Flood Insurance Act of 1968 (42 U.S.C. 4001 

3 et seq.). 

4 ‘‘(B) FLOOD INSURANCE.—The term ‘flood 

5 insurance’ means— 

6 ‘‘(i) Federal flood insurance; and 

7 ‘‘(ii) private flood insurance. 

8 ‘‘(C) PRIVATE FLOOD INSURANCE.—The 

9 term ‘private flood insurance’ means an insur10 ance policy that— 

11 ‘‘(i) is issued by an insurance com12 pany that is— 

13 ‘‘(I) licensed, admitted, or other14 wise approved to engage in the busi15 ness of insurance in the State in 

16 which the insured building is located, 

17 by the insurance regulator of that 

18 State; or 

19 ‘‘(II) eligible as a nonadmitted 

20 insurer to provide insurance in the 

21 home State of the insured, in accord22 ance with sections 521 through 527 of 

23 the Nonadmitted and Reinsurance Re24 form Act of 2010 (15 U.S.C. 8201 

25 through 8206); 


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•S 1313 IS

1 ‘‘(ii) is issued by an insurance com2 pany that is not otherwise disapproved as 

3 a surplus lines insurer by the insurance 

4 regulator of the State in which the prop5 erty to be insured is located; and 

6 ‘‘(iii) provides flood insurance cov7 erage that complies with the laws and reg8 ulations of that State. 

9 ‘‘(D) STATE.—The term ‘State’ means any 

10 State of the United States, the District of Co11 lumbia, the Commonwealth of Puerto Rico, 

12 Guam, the Northern Mariana Islands, the Vir13 gin Islands, and American Samoa.’’. 

14 (2) EFFECT OF PRIVATE FLOOD INSURANCE

15 COVERAGE ON CONTINUOUS COVERAGE REQUIRE16 MENTS.—Section 1308 of the National Flood Insur17 ance Act of 1968 (42 U.S.C. 4015) is amended by 

18 adding at the end the following: 

19 ‘‘(n) EFFECT OF PRIVATE FLOOD INSURANCE COV20 ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.— 

21 For purposes of applying any statutory, regulatory, or ad22 ministrative continuous coverage requirement, including 

23 under section 1307(g)(1), the Administrator shall consider 

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•S 1313 IS

1 ered by private flood insurance to be a period of contin2 uous coverage.’’. 

3 (b) REPORT ON LEVEL OF PERCEIVED ADVERSE SE4 LECTION.—Not later than 2 years after the date of enact5 ment of this Act, the Administrator shall submit to Con6 gress a report on the extent to which, of the properties 

7 that are required to satisfy the mandatory purchase re8 quirement, the properties for which private flood insurance 

9 is purchased tend to be at a lower risk of flooding than 

10 the properties for which Federal flood insurance is pur11 chased (commonly referred to as ‘‘adverse selection’’), by 

12 detailing risk classifications of private flood insurance 

13 policies. 

14 SEC. 402. PROVISION OF PRIVATE FLOOD INSURANCE BY 

15 WRITE YOUR OWN COMPANIES. 

16 (a) TEMPORARY AUTHORITY FOR PROVISION OF PRI17 VATE FLOOD INSURANCE BY WRITE YOUR OWN COMPA18 NIES FOR CERTAIN PROPERTIES.—During the first 2 

19 years beginning after the date of enactment of this Act, 

20 the Administrator may not prohibit a Write Your Own 

21 company from offering or selling private flood insurance 

22 outside of the Write Your Own Program for properties 

23 that are described in subparagraphs (A) through (D) of 

24 section 1307(a)(2) of the National Flood Insurance Act 

25 of 1968 (42 U.S.C. 4014(a)(2)). 


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1 (b) AUTHORITY FOR EXPANDED PROVISION OF PRI2 VATE FLOOD INSURANCE BY WRITE YOUR OWN COMPA3 NIES.—On and after January 1 of the third year begin4 ning after the date of enactment of this Act, if the Admin5 istrator determines, based on the report required under 

6 subsection (d)(1) and any other independent data avail7 able, that the provision of private flood insurance by a 

8 Write Your Own company— 

9 (1) to properties in addition to the properties 

10 described in subsection (a) will not adversely impact 

11 the ability of the National Flood Insurance Program 

12 to maintain a diverse risk pool, the Administrator 

13 may waive any remaining restriction, under a Fed14 eral statute or regulation, on the ability of a Write 

15 Your Own company to offer or sell private flood in16 surance outside the Write Your Own Program, if the 

17 Administrator promulgates regulations to ensure a 

18 diverse risk pool for Write Your Own companies that 

19 are competing with the National Flood Insurance 

20 Program; or 

21 (2) is a deterrent to the National Flood Insur22 ance Program maintaining a diverse risk pool of 

23 policies, the Administrator may place further restric24 tions on the ability of a Write Your Own company 

25 to offer or sell private flood insurance. 


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1 (c) WYO ARRANGEMENT.—The Administrator shall 

2 amend article XIII of the WYO Company Financial As3 sistance/Subsidy Arrangement as necessary to implement 

4 subsections (a) and (b). 

5 (d) REPORTS.— 

6 (1) INITIAL REPORT.—Not later than the last 

7 day of the 2-year period described in subsection (a), 

8 the Administrator shall submit to Congress a report 

9 detailing the risk classifications of properties for 

10 which private flood insurance was sold and under11 written by Write Your Own companies during that 

12 2-year period. 

13 (2) ADDITIONAL REPORT.—Not later than 5 

14 years after the date on which the report is required 

15 to be submitted under paragraph (1), the Adminis16 trator shall submit to Congress a report detailing 

17 the risk classifications of properties for which pri18 vate flood insurance was sold and underwritten by 

19 Write Your Own companies during that 5-year pe20 riod. 

21 SEC. 403. AVAILABILITY OF NFIP CLAIMS DATA. 

22 (a) STUDY REQUIRED.— 

23 (1) IN GENERAL.—The Administrator shall 

24 study the feasibility of selling or licensing the use of 

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1 ance Program claims data (referred to in this sec2 tion as ‘‘covered claims data’’) to nongovernmental 

3 entities. 

4 (2) CONTENTS.—In conducting the study re5 quired under paragraph (1), the Administrator shall, 

6 at a minimum— 

7 (A) investigate one or more methods of 

8 providing the most specific covered claims data 

9 possible while reasonably protecting policyholder 

10 privacy; 

11 (B) review existing means, as of the date 

12 of enactment of this Act, by which the Federal 

13 Government provides leases or licenses to pri14 vate persons, and the various regulations, 

15 terms, conditions, and guidance employed; 

16 (C) identify potential uses for covered 

17 claims data, any known risks concerning those 

18 uses, and ways to mitigate or eliminate the 

19 risks; 

20 (D) identify mechanisms for determining 

21 the likely market value for access to covered 

22 claims data; and 

23 (E) recommend actions the Administrator 

24 could take, if any, to prevent unintended con25 sequences associated with the sale or licensing 


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1 for private insurance purposes covered claims 

2 data. 

3 (b) REPORT BY ADMINISTRATOR.— 

4 (1) REPORT REQUIRED.—Not later than 1 year 

5 after the date of enactment of this Act, the Adminis6 trator shall submit to the Committee on Banking, 

7 Housing, and Urban Affairs of the Senate and the 

8 Committee on Financial Services of the House of 

9 Representatives a report that contains the results 

10 and conclusions of the study conducted under sub11 section (a) (referred to in this subsection as ‘‘the 

12 study’’). 

13 (2) CONTENTS.—The report submitted under 

14 paragraph (1) shall include— 

15 (A) an analysis of— 

16 (i) the recommendations of the study; 

17 and 

18 (ii) the potential for covered claims 

19 data to increase the number of individuals 

20 insured against the peril of flood, to reduce 

21 the amount of debt the National Flood In22 surance Program is required to service, or 

23 both; 


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1 (B) a description of actions taken by the 

2 Administrator to implement any of the rec3 ommendations of the study; and 

4 (C) any recommendations of the study 

5 that, as of the date on which the report is sub6 mitted, have been deferred or not acted upon, 

7 together with an explanatory statement. 

8 (c) AUTHORIZATION TO SELL OR LICENSE CLAIMS

9 DATA.— 

10 (1) AMENDMENTS.— 

11 (A) IN GENERAL.—Section 1313 of the 

12 National Flood Insurance Act of 1968 (42 

13 U.S.C. 4020) is amended— 

14 (i) by striking ‘‘The Administrator’’ 

15 and inserting the following: 

16 ‘‘(a) IN GENERAL.—The Administrator’’; and 

17 (ii) by adding at the following: 

18 ‘‘(b) SELLING OR LICENSING OF CLAIMS DATA.— 

19 ‘‘(1) IN GENERAL.—The Administrator may sell 

20 or license the use of historical structure-specific 

21 claims data obtained and maintained by the Na22 tional Flood Insurance Program (referred to in this 

23 subsection as ‘covered claims data’) to nongovern24 mental entities as the Administrator determines is 

25 appropriate and in the public interest. 


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1 ‘‘(2) RULES, PROCEDURES.—The Administrator 

2 may adopt rules, terms, conditions, policies, and pro3 cedures concerning— 

4 ‘‘(A) the selling or licensing of covered 

5 claims data; and 

6 ‘‘(B) the use, protection, and maintenance 

7 of covered claims data by nongovernmental en8 tities. 

9 ‘‘(3) PROCEEDS.—The Administrator shall de10 posit the proceeds from selling or licensing covered 

11 claims data under this subsection in the National 

12 Flood Insurance Fund.’’. 

13 (B) FUNDING.—Section 1310 of the Na14 tional Flood Insurance Act of 1968 (42 U.S.C. 

15 4017) is amended— 

16 (i) in subsection (a)— 

17 (I) in paragraph (7), by striking 

18 ‘‘and’’ at the end; 

19 (II) in paragraph (8), by striking 

20 the period at the end and inserting ‘‘; 

21 and’’; and 

22 (III) by adding at the end the 

23 following: 

24 ‘‘(9) for carrying out section 1313.’’; and 

25 (ii) in subsection (b)— 


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1 (I) in paragraph (5), by striking 

2 ‘‘and’’ at the end; 

3 (II) by redesignating paragraph 

4 (6) as paragraph (7); and 

5 (III) by inserting after paragraph 

6 (5) the following: 

7 ‘‘(6) proceeds from the sale or licensing of his8 torical structure-specific claims data, as authorized 

9 under section 1313(b); and’’. 

10 (2) EFFECTIVE DATE.— 

11 (A) IN GENERAL.—Except as provided in 

12 subparagraph (B), the amendments made by 

13 paragraph (1) shall take effect on the date on 

14 which the Administrator publishes in the Fed15 eral Register a certification that the Adminis16 trator has— 

17 (i) submitted the report required 

18 under subsection (b); 

19 (ii) determined that it is legally and 

20 practically feasible to implement a program 

21 to sell or license the use of covered claims 

22 data to nongovernmental entities; and 

23 (iii) determined that a program de24 scribed in subparagraph (B) would be in 

25 the public interest. 


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1 (B) CREDITS TO FUND.—The amendment 

2 made by clause (ii) of paragraph (1)(B) shall 

3 take effect on the date of enactment of this Act. 

4 SEC. 404. FEES AND SURCHARGES FOR PRIVATE FLOOD IN5 SURANCE POLICIES. 

6 (a) SURCHARGES.—Section 1308A(a) of the National 

7 Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)) is 

8 amended— 

9 (1) by striking ‘‘The Administrator’’ and insert10 ing the following: 

11 ‘‘(1) COLLECTION ON NFIP POLICIES.—The Ad12 ministrator’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(2) COLLECTION ON PRIVATE POLICIES.— 

15 ‘‘(A) IN GENERAL.—An insurance com16 pany that issues a policy for private flood insur17 ance shall impose and collect an annual sur18 charge, in the amount provided in subsection 

19 (b), on a private flood insurance policy. 

20 ‘‘(B) IN ADDITION TO INCREASED COST OF

21 COMPLIANCE SURCHARGE.—The surcharge im22 posed under subparagraph (A) shall be in addi23 tion to the surcharge imposed under section 

24 1304(c) and any other assessments and sur25 charges applied to such coverage. 


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1 ‘‘(C) FEDERAL EQUIVALENCY FEE PAY2 ABLE TO ADMINISTRATOR.—Not later than 180 

3 days after the date on which an insurance com4 pany collects a surcharge under subparagraph 

5 (A), the insurance company shall transfer the 

6 amount of the surcharge to the Administrator, 

7 who shall deposit the amount in the National 

8 Flood Insurance Fund established under section 

9 1310. 

10 ‘‘(D) INFORMATION.—The Administrator 

11 may require the provision of such information 

12 as the Administrator decides is necessary to 

13 verify that a surcharge imposed and collected 

14 under subparagraph (A) has been imposed and 

15 collected at the proper time and in the proper 

16 amount. 

17 ‘‘(E) COST OF COLLECTING SURCHARGE.— 

18 No portion of the surcharge collected under 

19 subparagraph (A) may be retained by the insur20 ance company for the costs of collecting, han21 dling, or remitting the surcharge except for in22 terest accruing to the company after collection 

23 and before remittance.’’. 


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1 (b) FEDERAL POLICY FEE.—Section 1307(a) of the 

2 National Flood Insurance Act of 1968 (42 U.S.C. 

3 4014(a)) is amended— 

4 (1) in paragraph (1)(B)(iii), by striking ‘‘shall 

5 be recovered by’’ and all that follows and inserting 

6 ‘‘shall be recovered— 

7 ‘‘(I) in the case of a policy under 

8 the national flood insurance program, 

9 by a fee that— 

10 ‘‘(aa) shall be charged to 

11 policyholders; and 

12 ‘‘(bb) shall not be subject to 

13 any agents’ commissions, com14 pany expense allowances, or 

15 State or local premium taxes; 

16 and 

17 ‘‘(II) in the case of a private 

18 flood insurance policy, by a fee— 

19 ‘‘(aa) that shall be— 

20 ‘‘(AA) charged to pol21 icyholders; 

22 ‘‘(BB) collected by the 

23 insurance company that 

24 issued the policy; and 


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1 ‘‘(CC) transferred, not 

2 later than 180 days after 

3 the date on which the fee is 

4 collected, to the Adminis5 trator, who shall deposit the 

6 amount of the fee in the Na7 tional Flood Insurance Fund 

8 established under section 

9 1310; 

10 ‘‘(bb) that shall not be sub11 ject to any agents’ commissions, 

12 company expense allowances, or 

13 State or local premium taxes; 

14 and 

15 ‘‘(cc) with respect to 

16 which— 

17 ‘‘(AA) the Adminis18 trator may require the provi19 sion of such information as 

20 the Administrator decides is 

21 necessary to verify that the 

22 fee has been imposed and 

23 collected at the proper time 

24 and in the proper amount; 

25 and 


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1 ‘‘(BB) no portion may 

2 be retained by the insurance 

3 company that collected the 

4 fee for the costs of col5 lecting, handling, or remit6 ting the fee except for inter7 est accruing to the company 

8 after collection and before 

9 remittance; and’’; and 

10 (2) in paragraph (2), in the matter preceding 

11 subparagraph (A), by inserting ‘‘, including a fee 

12 charged to policyholders of private flood insurance in 

13 a manner that is consistent with paragraph 

14 (1)(B)(iii)(II),’’ after ‘‘policyholders’’. 

15 (c) INCREASED COST OF COMPLIANCE COVERAGE

16 UNDER PRIVATE POLICIES.—Section 102(b)(7)(C) of the 

17 Flood Disaster Protection Act of 1973 (42 U.S.C. 

18 4012a(b)(7)(C)), as amended by section 401 of this Act, 

19 is amended— 

20 (1) in clause (ii), by striking ‘‘and’’ at the end; 

21 (2) in clause (iii), by striking the period at the 

22 end and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(iv) provides ordinance and law cov25 erage that meets or exceeds increased cost 


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1 of compliance coverage provided under a 

2 standard flood insurance policy under the 

3 national flood insurance program’’. 

4 (d) APPLICABILITY.—The amendments made by sub5 sections (a), (b), and (c) shall apply with respect to a pri6 vate flood insurance policy that is newly issued or renewed 

7 after the date of enactment of this Act. 

8 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 (1) PREMIUM SURCHARGE.—Section 

10 1308A(a)(1) of the National Flood Insurance Act of 

11 1968 (42 U.S.C. 4015a(a)(1)), as so designated by 

12 subsection (a)(1) of this section, is amended, in the 

13 second sentence, by striking ‘‘section 1304(b)’’ and 

14 inserting ‘‘section 1304(c)’’. 

15 (2) NATIONAL FLOOD INSURANCE FUND.—Sec16 tion 1310(b) of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4017(b)), as amended by section 

18 403(c)(1)(B)(ii) of this Act, is amended— 

19 (A) in paragraph (6), as so designated, by 

20 striking ‘‘and’’ at the end; 

21 (B) by redesignating paragraph (7) as 

22 paragraph (9); and 

23 (C) by inserting after paragraph (6) the 

24 following: 


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1 ‘‘(7) surcharges collected under section 

2 1308A(a)(2); 

3 ‘‘(8) fees collected under section 

4 1307(a)(1)(B)(iii); and’’. 

5 SEC. 405. WRITE YOUR OWN RISK SHARING PILOT PRO6 GRAM. 

7 (a) DEFINITION.—In this section— 

8 (1) the term ‘‘excess flood insurance policy’’ 

9 means a flood insurance policy sold under the Pilot 

10 Program; and 

11 (2) the term ‘‘Pilot Program’’ means the Write 

12 Your Own Risk Sharing Pilot Program established 

13 under subsection (b). 

14 (b) ESTABLISHMENT.—The Administrator shall es15 tablish and conduct a pilot program under the National 

16 Flood Insurance Program, to be known as the ‘‘Write 

17 Your Own Risk Sharing Pilot Program’’, to make avail18 able a flood insurance policy applying only to loss or dam19 age in excess of not less than $50,000 for sale by Write 

20 Your Own companies that agree to participate in the Pilot 

21 Program. 

22 (c) ELIGIBILITY TO PARTICIPATE IN PILOT PRO23 GRAM.—The Administrator may establish terms, condi24 tions, and eligibility criteria for Write Your Own compa25 nies participating in the Pilot Program. 


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1 (d) TERMS AND CONDITIONS OF EXCESS FLOOD

2 POLICY.— 

3 (1) CHARGEABLE RATES.—The chargeable rate 

4 for an excess flood insurance policy sold in an area 

5 (or subdivision thereof) shall be not less than the ap6 plicable estimated risk premium rate for the area (or 

7 subdivision thereof) under section 1307(a)(1) of the 

8 National Flood Insurance Act of 1968 (42 U.S.C. 

9 4014(a)(1)). 

10 (2) APPLICATION OF SURCHARGES AND

11 FEES.—Any surcharge or fee, with respect to an ex12 cess flood insurance policy, charged to a policyholder 

13 participating in the Pilot Program for a period shall 

14 be reduced by the amount of any surcharge for a 

15 private flood insurance policy under section 

16 1308A(a)(2) of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4015a(a)(2)) (as added by section 

18 404) or fee for a private flood insurance policy 

19 under section 1307(a)(1)(B)(iii) of that Act (42 

20 U.S.C. 4014(a)(1)(B)(iii)) (as amended by section 

21 404), respectively, paid by the policyholder for cov22 erage during the same period. 

23 (3) TERMS AND CONDITIONS OF INSURANCE.— 

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1 clusions, and limitations as the Standard Flood 

2 Insurance Policy insofar as the Policy relates to 

3 the requirements of this section. 

4 (B) COVERAGE AMOUNTS.—Coverage 

5 amounts for an excess flood insurance policy 

6 shall not exceed the coverage amounts estab7 lished under section 1306(b) of the National 

8 Flood Insurance Act of 1968 (42 U.S.C. 

9 4013(b)). 

10 (4) UNDERLYING POLICY REQUIREMENT.—An 

11 excess flood insurance policy sold under the Pilot 

12 Program shall require the insured to carry primary 

13 flood insurance that— 

14 (A) provides a maximum coverage limit of 

15 not less than $50,000; 

16 (B) is issued by a Write Your Own com17 pany; and 

18 (C) complies with any other conditions 

19 adopted by the Administrator. 

20 (e) AUTHORITY.—The Administrator shall carry out 

21 the Pilot Program as authorized by and in accordance 

22 with the National Flood Insurance Act of 1968 (42 U.S.C. 

23 4001 et seq.) insofar as that Act relates to this section, 

24 subject to the modifications made by this section. 


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1 (f) IMPLEMENTATION.—The Administrator shall 

2 make policies available for sale to the public under the 

3 Pilot Program not later than 18 months after the date 

4 of enactment of this Act. 

5 (g) SUNSET.—The Administrator may not issue or 

6 renew contracts for flood insurance under the Pilot Pro7 gram— 

8 (1) on and after the date is 5 years after the 

9 date contracts for flood insurance under this section 

10 are made available for purchase; and 

11 (2) at any time after the expiration of the Na12 tional Flood Insurance Program under section 1319 

13 of the National Flood Insurance Act of 1968 (42 

14 U.S.C. 4026). 

15 (h) REPORT.—Not later than 180 days after the date 

16 on which the authority for the Pilot Program terminates 

17 under subsection (g), the Administrator shall submit to 

18 Congress a report on— 

19 (1) the aggregate amount of premiums, sur20 charges, and fees charged under the Pilot Program; 

21 and 

22 (2) claims loss data experienced by the Write 

23 Your Own companies participating in the Pilot Pro24 gram and the National Flood Insurance Program on 

25 policies sold under the Pilot Program. 


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1 TITLE V—MODERNIZING FLOOD 

2 MAPPING AND FLOOD RISK 

3 ACCURACY 

4 SEC. 501. REAUTHORIZATION OF NATIONAL FLOOD MAP5 PING PROGRAM. 

6 Section 100216(f) of the Biggert-Waters Flood In7 surance Reform Act of 2012 (42 U.S.C. 4101b(f)) is 

8 amended— 

9 (1) by striking ‘‘to carry out this section 

10 $400,000,000’’ and inserting the following: ‘‘to carry 

11 out this section— 

12 ‘‘(1) $400,000,000’’; and 

13 (2) by striking the period at the end and insert14 ing the following: ‘‘; and 

15 ‘‘(2) $500,000,000 for each of fiscal years 2018 

16 through 2027.’’. 

17 SEC. 502. MAPPING STANDARDS AND GUIDELINES FOR 

18 NONGOVERNMENTAL ENTITIES. 

19 Section 100215 of the Biggert-Waters Flood Insur20 ance Reform Act of 2012 (42 U.S.C. 4101a) is amended 

21 by adding at the end the following: 

22 ‘‘(m) PRIVATE OR COMMUNITY FLOOD MAPS.— 

23 ‘‘(1) STANDARDS AND PROCEDURES.—In addi24 tion to the other duties of the Council under this 

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1 ment of this subsection, the Council shall develop 

2 and establish a set of standards, guidelines, and pro3 cedures for— 

4 ‘‘(A) State and local governments, feder5 ally or State-recognized metropolitan planning 

6 organizations (commonly known as ‘MPOs’), 

7 federally or State-recognized councils of local 

8 governments, and federally or State-recognized 

9 rural transportation planning organizations to 

10 use in mapping flood risks and developing alter11 native maps to the flood insurance rate maps 

12 developed by the Administrator; and 

13 ‘‘(B) certification, by the Administrator 

14 not later than 90 days after the date on which 

15 a map developed under subparagraph (A) is 

16 submitted to the Administrator, for use under 

17 the National Flood Insurance Program in the 

18 case of any area covered by a flood insurance 

19 rate map developed or approved by the Admin20 istrator that has not been updated or reissued 

21 during the preceding 3-year period. 

22 ‘‘(2) TREATMENT.—On and after the date on 

23 which the Administrator certifies a map under para24 graph (1)(B), the map— 


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•S 1313 IS

1 ‘‘(A) shall be considered the flood insur2 ance rate map in effect for all purposes of the 

3 National Flood Insurance Program with respect 

4 to the area covered by the map; and 

5 ‘‘(B) may not be revised, updated, or re6 placed in accordance with the standards, guide7 lines, and procedures established under para8 graph (1) before the expiration of the 3-year 

9 period beginning on that date of certification. 

10 ‘‘(3) EXEMPTION FROM RULEMAKING.—Until 

11 the date on which the Administrator promulgates 

12 regulations implementing paragraphs (1) and (2), 

13 the Administrator may adopt policies and proce14 dures, notwithstanding any other provision of law, 

15 necessary to implement those paragraphs without re16 gard to section 553 of title 5, United States Code, 

17 and without conducting regulatory analyses other18 wise required by statute, regulation, or Executive 

19 order.’’. 

20 SEC. 503. USE OF HIGH-RESOLUTION MAPPING TECH21 NOLOGY. 

22 (a) IN GENERAL.—Section 100216(b)(1) of the 

23 Biggert-Waters Flood Insurance Reform Act of 2012 (42 

24 U.S.C. 4101b(b)(1)) is amended— 


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1 (1) in subparagraph (A)(i), by inserting ‘‘sub2 ject to subparagraph (D),’’ before ‘‘all populated 

3 areas’’; 

4 (2) in subparagraph (B), by striking ‘‘and’’ at 

5 the end; 

6 (3) in subparagraph (C), by striking the period 

7 at the end and inserting the following: ‘‘, including 

8 by facilitating, partnering with other Federal, State, 

9 and local agencies with respect to, and leveraging 

10 the efficient acquisition of the most up-to-date high11 resolution topographic data, such as Light Detection 

12 and Ranging (commonly known as ‘LiDAR’) data 

13 and other new and emerging technologies; and’’; and 

14 (4) by adding at the end the following: 

15 ‘‘(D) establish standards that may be used 

16 as the basis for insurance rating purposes to 

17 identify multi-frequency flood hazards and flood 

18 hazard information that appropriately charac19 terizes the nature of flooding for areas subject 

20 to a mapping update, including by using the 

21 most up-to-date high-resolution topographic 

22 data as required under subparagraph (C), in 

23 order to reduce flood risk and improve the accu24 racy of National Flood Insurance Program rate 

25 maps.’’. 


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1 (b) REPORT.—Not later than 180 days after the date 

2 of enactment of this Act, the Administrator shall submit 

3 to Congress a report on compliance by the Administrator 

4 with the requirement under subparagraphs (C) and (D) 

5 of section 100216(b)(1) of the Biggert-Waters Flood In6 surance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)), as 

7 amended by subsection (a), to use the most up-to-date 

8 high-resolution topographic data and multi-frequency 

9 flood hazards in order to reduce flood risk and improve 

10 the accuracy of National Flood Insurance Program rate 

11 maps. 

12 SEC. 504. PROTECTED AREAS. 

13 Section 100216(b) of the Biggert-Waters Flood In14 surance Reform Act of 2012 (42 U.S.C. 4101b(b)) is 

15 amended by adding at the end the following: 

16 ‘‘(4) ZONES PROTECTED BY LEVEE SYSTEMS.— 

17 ‘‘(A) APPLICABILITY.—Subject to full im18 plementation of this section, and notwith19 standing any other provision of law, this para20 graph shall apply to a community in which the 

21 Administrator maps or re-maps a levee-im22 pacted area in which the pertinent levee system 

23 fails to meet the minimum design, operation, 

24 and maintenance standards of the National 

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1 creditation on a National Flood Insurance Pro2 gram rate map. 

3 ‘‘(B) AL ZONES.—For levee-impacted 

4 areas described in subparagraph (A), the Ad5 ministrator shall establish flood risk zones 

6 known as ‘AL Zones’ on the National Flood In7 surance Program rate map. 

8 ‘‘(C) ACTUARIAL RATES.— 

9 ‘‘(i) IN GENERAL.—The Administrator 

10 shall make available flood insurance to 

11 properties in AL Zones at actuarial rates 

12 based upon the risk associated with struc13 tures within the applicable AL zone. 

14 ‘‘(ii) TEMPORARY RATES.—Until the 

15 Administrator promulgates actuarial rates 

16 for the various AL zones, a structure with17 in a portion of a community located within 

18 a levee-impacted area described in sub19 paragraph (A) shall be eligible for rates as20 sociated with areas of moderate flood haz21 ards (also known as ‘Standard X zone’ 

22 rates).’’. 

23 SEC. 505. COASTAL FLOOD MODELS. 

24 Section 100216(b) of the Biggert-Waters Flood In25 surance Reform Act of 2012 (42 U.S.C. 4101b(b)), as 


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1 amended by section 504, is amended by adding at the end 

2 the following: 

3 ‘‘(5) COASTAL FLOOD MODELS.—In updating 

4 maps under this section, the Administrator shall use 

5 coastal flood models that ensure technically and sci6 entifically accurate modeling to represent and com7 municate flood risk.’’. 

8 TITLE VI—ENHANCING NA9 TIONAL FLOOD INSURANCE 

10 PROGRAM TRANSPARENCY 

11 AND ACCOUNTABILITY 

12 SEC. 601. DEADLINE FOR APPROVAL OF CLAIMS. 

13 (a) IN GENERAL.—Section 1312 of the National 

14 Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend15 ed by section 205, is amended by adding at the end the 

16 following: 

17 ‘‘(e) DEADLINE FOR APPROVAL OF CLAIMS.— 

18 ‘‘(1) IN GENERAL.—Not later than 30 days 

19 after the submission of a proof of loss, the Adminis20 trator shall notify the insured regarding the ap21 proval or disapproval of the claim. 

22 ‘‘(2) EXTENSION OF CLAIM DETERMINATION

23 DEADLINE.—The Administrator may extend the 

24 deadline under paragraph (1) by a single additional 

25 15-day period under extraordinary circumstances, as 


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1 determined according to criteria adopted by the Ad2 ministrator. 

3 ‘‘(3) PAYMENT OF CLAIMS.—The Administrator 

4 shall make payment for an approved claim as soon 

5 as possible after approval of the claim. 

6 ‘‘(f) NOTIFICATION AND PROOFS OF LOSS.— 

7 ‘‘(1) IN GENERAL.—A flood insurance claim 

8 filed under this title for damage to or loss of prop9 erty may not be denied based on the proof of loss 

10 requirements of the standard flood insurance policy 

11 under the national flood insurance program if the 

12 policyholder— 

13 ‘‘(A) provides notice of the claim not later 

14 than 60 days after the date of the occurrence 

15 of the loss; and 

16 ‘‘(B) complies with the remaining proof of 

17 loss requirements under the standard flood in18 surance policy not later than— 

19 ‘‘(i) 180 days after the date of the oc20 currence of the loss; or 

21 ‘‘(ii) any later date specified by the 

22 Administrator. 

23 ‘‘(2) SUPPLEMENTAL PROOF OF LOSS.—A pol24 icyholder may amend or supplement a proof of loss 


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1 not later than 180 days after the date on which the 

2 policyholder submits the initial proof of loss.’’. 

3 (b) APPLICABILITY.—The amendment made by sub4 section (a) shall apply to any claim for damage to or loss 

5 of property covered by flood insurance made available 

6 under the National Flood Insurance Act of 1968 (42 

7 U.S.C. 4001 et seq.) that is pending on, or made after, 

8 the date of enactment of this Act. 

9 SEC. 602. FLOOD INSURANCE TRANSPARENCY, ACCOUNT10 ABILITY, AND REFORM. 

11 (a) REPORTS AND OTHER CLAIM-RELATED DOCU12 MENTS.—Section 1312 of the National Flood Insurance 

13 Act of 1968 (42 U.S.C. 4019), as amended by section 601, 

14 is amended by adding at the end the following: 

15 ‘‘(f) FINAL ENGINEERING REPORTS.—The Adminis16 trator shall require that, in the case of any on-site inspec17 tion of a property by an engineer for the purpose of assess18 ing any claim for losses covered by a policy for flood insur19 ance coverage provided under this title (referred to in this 

20 subsection as a ‘covered claim’), the final engineering re21 port shall be provided to the insured under the policy, as 

22 follows: 

23 ‘‘(1) TIMING.—The final engineering report 

24 may not be transmitted to any other person, emVerDate Sep 11 2014 00:19 Jun 12, 2017 Jkt 069200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S1313.IS S1313

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1 ployer, agency, or entity, before it is transmitted to 

2 the insured. 

3 ‘‘(2) PROHIBITION ON ALTERATIONS; CERTIFI4 CATION.—The final engineering report— 

5 ‘‘(A) shall be true, complete, and 

6 unredacted; 

7 ‘‘(B) may not include alterations by, or at 

8 the request of, anyone other than the individual 

9 with responsible charge for the report; and 

10 ‘‘(C) shall include a certification, signed by 

11 the individual with responsible charge for the 

12 report, that the report does not contain any al13 terations described in subparagraph (B). 

14 ‘‘(3) TRANSMITTAL.— 

15 ‘‘(A) IN GENERAL.—The final engineering 

16 report shall be transmitted to the insured in a 

17 manner prescribed by the Administrator that 

18 provides reasonable assurance that it was trans19 mitted directly to the insured by the individual 

20 with responsible charge. 

21 ‘‘(B) DIRECT DISCLOSURE.—A Write Your 

22 Own company or direct servicing agent in pos23 session of a final engineering report subject to 

24 disclosure under this subsection may transmit 


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1 the report to the insured without further review 

2 or approval by the Administrator. 

3 ‘‘(4) REPORTS COVERED.—For purposes of this 

4 subsection, the term ‘final engineering report’ means 

5 an engineering report, survey, or other document in 

6 connection with the covered claim that— 

7 ‘‘(A) is based on the on-site inspection; 

8 ‘‘(B) contains final conclusions with re9 spect to an engineering issue or issues involved 

10 in the claim; and 

11 ‘‘(C) is signed by the individual with re12 sponsible charge or affixed with the seal of the 

13 individual with responsible charge, or both. 

14 ‘‘(g) CLAIMS ADJUSTMENT REPORTS.—The Adminis15 trator shall require that, in the case of any on-site inspec16 tion of a property by a claims adjustor for the purpose 

17 of assessing any claim for losses covered by a policy for 

18 flood insurance coverage provided under this title (referred 

19 to in this subsection as a ‘covered claim’), any claims ad20 justment claims adjustment report shall be provided to the 

21 insured under the policy, as follows: 

22 ‘‘(1) TIMING.—The claims adjustment report 

23 may not be transmitted to any other person, em24 ployer, agency, or entity, before it is transmitted to 

25 the insured. 


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1 ‘‘(2) PROHIBITION ON ALTERATIONS; CERTIFI2 CATION.—The claims adjustment report— 

3 ‘‘(A) shall be true, complete, and 

4 unredacted; 

5 ‘‘(B) may not include alterations by, or at 

6 the request of, anyone other than the preparer 

7 of the report; and 

8 ‘‘(C) shall include a certification, signed by 

9 the preparer, that the report does not contain 

10 any alterations described in subparagraph (B). 

11 ‘‘(3) TRANSMITTAL.— 

12 ‘‘(A) IN GENERAL.—The claims adjust13 ment report shall be transmitted to the insured 

14 in a manner prescribed by the Administrator 

15 that provides reasonable assurance that it was 

16 transmitted directly to the insured by the pre17 parer. 

18 ‘‘(B) DIRECT DISCLOSURE.—A Write Your 

19 Own company or direct servicing agent in pos20 session of a claims adjustment report subject to 

21 disclosure under this subsection may transmit 

22 the report to the insured without further review 

23 or approval by the Administrator. 

24 ‘‘(4) REPORTS COVERED.—For purposes of this 

25 subsection, the term ‘claims adjustment report’— 


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1 ‘‘(A) means any report or document in 

2 connection with the covered claim that is based 

3 on the on-site inspection by the claims adjustor, 

4 including any adjustment report and field re5 port; 

6 ‘‘(B) includes any draft, preliminary 

7 version, or copy of a report described in sub8 paragraph (A) and any amendments or addi9 tions to any such report; and 

10 ‘‘(C) does not include a final engineering 

11 report, as that term is defined for purposes of 

12 subsection (e). 

13 ‘‘(h) OTHER CLAIM-RELATED DOCUMENTS.— 

14 ‘‘(1) DEFINITION OF CLAIM-RELATED DOCU15 MENT.—In this subsection, the term ‘claim-related 

16 document’ means any document, other than a final 

17 engineering report (as defined in subsection (e)) or 

18 a claims adjustment report (as defined in subsection 

19 (f)), that was prepared for the purposes of assessing 

20 a claim for losses covered by flood insurance made 

21 available under this title, including— 

22 ‘‘(A) a repair and replacement estimate or 

23 bid; 

24 ‘‘(B) an appraisal; 

25 ‘‘(C) a scope of loss; 


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1 ‘‘(D) a drawing; 

2 ‘‘(E) a plan; 

3 ‘‘(F) a report, including a draft report pre4 pared based on an on-site inspection of a prop5 erty conducted by a claims adjustor or engineer; 

6 ‘‘(G) a third-party finding on the amount 

7 of loss, amount of covered damage, or cost of 

8 repairs; and 

9 ‘‘(H) any other valuation, measurement, or 

10 loss adjustment calculation of the amount of 

11 loss, amount of covered damage, or cost of re12 pairs. 

13 ‘‘(2) AVAILABILITY OF DOCUMENTS.—Any enti14 ty servicing a claim under the national flood insur15 ance program— 

16 ‘‘(A) shall retain each claim-related docu17 ment prepared by or for the entity; 

18 ‘‘(B) upon request by a claimant or an au19 thorized representative of a claimant, shall pro20 vide to the claimant or representative a copy of 

21 any claim-related document described in sub22 paragraph (A) that pertains to the claimant; 

23 and 

24 ‘‘(C) not later than 30 days after receiving 

25 notice of a claim, shall notify the claimant that 


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1 the claimant or an authorized representative of 

2 the claimant may obtain, upon request, a copy 

3 of any claim-related document described in sub4 paragraph (A) that pertains to the claimant. 

5 ‘‘(i) USE OF CLAIM REPORTS.— 

6 ‘‘(1) IN GENERAL.—When adjusting claims for 

7 any damage to or loss of property covered by flood 

8 insurance made available under this title, the Ad9 ministrator shall only rely upon final claim reports 

10 that are prepared in compliance with applicable 

11 State and Federal laws regarding professional licen12 sure and conduct. 

13 ‘‘(2) NON-REIMBURSEMENT.—The Adminis14 trator may decline to reimburse a Write Your Own 

15 company for claim reports not prepared in accord16 ance with paragraph (1).’’. 

17 (b) JUDICIAL REVIEW.— 

18 (1) GOVERNMENT PROGRAM WITH INDUSTRY

19 ASSISTANCE.—Section 1341 of the National Flood 

20 Insurance Act of 1968 (42 U.S.C. 4072) is amended 

21 to read as follows: 

22 ‘‘SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND 

23 JUDICIAL REVIEW. 

24 ‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—If 

25 the program is carried out as provided in section 1340, 


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1 the Administrator may adjust and make payment of any 

2 claims for proved and approved losses covered by flood in3 surance. 

4 ‘‘(b) JUDICIAL REVIEW.—Upon the disallowance or 

5 partial disallowance by the Administrator of a claim de6 scribed in subsection (a), or upon the refusal of the claim7 ant to accept the amount allowed upon a claim described 

8 in subsection (a)— 

9 ‘‘(1) the claimant may institute an action 

10 against the Administrator on the claim in the United 

11 States district court for the district in which the in12 sured property or the major part thereof shall have 

13 been situated— 

14 ‘‘(A) not later than 2 years after the date 

15 on which the claimant receives notice of dis16 allowance or partial disallowance of the claim; 

17 or 

18 ‘‘(B) in the case of a denial of a claim for 

19 losses that is appealed to the Administrator, not 

20 later than the later of— 

21 ‘‘(i) 90 days after the date of a final 

22 determination upon appeal denying the 

23 claim in whole or in part; or 


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1 ‘‘(ii) 2 years after the date on which 

2 the claimant receives notice of disallowance 

3 or partial disallowance of the claim; and 

4 ‘‘(2) a court described in paragraph (1) shall 

5 have original exclusive jurisdiction to hear and deter6 mine the action without regard to the amount in 

7 controversy. 

8 ‘‘(c) PRIVATE RIGHTS OF ACTION.—Nothing in this 

9 section, or in any regulation or policy implementing the 

10 national flood insurance program, may be construed to 

11 preclude a private right of action under any statute by 

12 a policyholder against a private entity for fraud arising 

13 from the handing or disposition of a claim for losses under 

14 this title.’’. 

15 (2) INDUSTRY PROGRAM WITH FEDERAL FINAN16 CIAL ASSISTANCE.—Section 1333 of the National 

17 Flood Insurance Act of 1968 (42 U.S.C. 4053) is 

18 amended to read as follows: 

19 ‘‘SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND 

20 JUDICIAL REVIEW. 

21 ‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—The 

22 insurance companies and other insurers that form, asso23 ciate, or otherwise join together in the pool under this part 

24 may adjust and pay all claims for proved and approved 


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1 losses covered by flood insurance in accordance with the 

2 provisions of this title. 

3 ‘‘(b) JUDICIAL REVIEW.—Upon the disallowance or 

4 partial disallowance by any company or other insurer de5 scribed in subsection (a) of a claim described in that sub6 section, or upon the refusal of the claimant to accept the 

7 amount allowed upon a claim described in that sub8 section— 

9 ‘‘(1) the claimant may institute an action on 

10 the claim against the company or other insurer in 

11 the United States district court for the district in 

12 which the insured property or the major part thereof 

13 shall have been situated— 

14 ‘‘(A) not later than 2 years after the date 

15 on which the claimant receives notice of dis16 allowance or partial disallowance of the claim; 

17 or 

18 ‘‘(B) in the case of a denial of a claim for 

19 losses that is appealed to the Administrator, not 

20 later than the later of— 

21 ‘‘(i) 90 days after the date of a final 

22 determination upon appeal denying the 

23 claim in whole or in part; or 


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1 ‘‘(ii) 2 years after the date on which 

2 the claimant receives notice of disallowance 

3 or partial disallowance of the claim; and 

4 ‘‘(2) a court described in paragraph (1) shall 

5 have original exclusive jurisdiction to hear and deter6 mine the action without regard to the amount in 

7 controversy. 

8 ‘‘(c) PRIVATE RIGHTS OF ACTION.—Nothing in this 

9 section, or in any regulation or policy implementing the 

10 national flood insurance program, may be construed to 

11 preclude a private right of action under any statute by 

12 a policyholder against a private entity for fraud arising 

13 from the handing or disposition of a claim for losses under 

14 this title.’’. 

15 (c) RECORDS AND REVIEWS.—Section 1348 of the 

16 National Flood Insurance Act of 1968 (42 U.S.C. 4084) 

17 is amended by adding at the end the following: 

18 ‘‘(c) ANNUAL REVIEW.—The Administrator shall 

19 conduct an annual review of each private entity partici20 pating in the national flood insurance program, including 

21 any company that has entered into a contract with a Write 

22 Your Own company to provide any service related to a pol23 icy or claim under the national flood insurance program, 

24 including adjusting, engineering, and legal services, to en25 sure compliance with this title and with all policies and 


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1 procedures established by the Administrator to prevent 

2 fraud and protect policyholders.’’. 

3 (d) PUBLICATION OF CLAIMS DATA.—Section 1312 

4 of the National Flood Insurance Act of 1968 (42 U.S.C. 

5 4019), as amended by subsection (a), is amended by add6 ing at the end the following: 

7 ‘‘(j) PUBLICATION OF CLAIMS DATA.—Not later than 

8 1 year after the date of enactment of the Flood Insurance 

9 Affordability and Sustainability Act of 2017, the Adminis10 trator shall create and maintain a publicly searchable on11 line database that includes, with respect to claims filed 

12 under the national flood insurance program after that date 

13 of enactment— 

14 ‘‘(1) the aggregate number of claims filed each 

15 month, broken down by State; 

16 ‘‘(2) the aggregate number of claims paid in 

17 part or in full; and 

18 ‘‘(3) the aggregate number of claim denials ap19 pealed, the number of claim denials upheld on ap20 peal, and the number of claim denials overturned on 

21 appeal. 

22 ‘‘(k) PRIVACY.—Nothing in this section or the Flood 

23 Insurance Affordability and Sustainability Act of 2017, or 

24 any amendment made by that Act, shall be construed to 

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1 tion or individual claim or specific property information 

2 in any publicly searchable database.’’. 

3 (e) OVERSIGHT OF LITIGATION.—Part C of chapter 

4 II of the National Flood Insurance Act of 1968 (42 U.S.C. 

5 4081 et seq.) is amended by adding at the end the fol6 lowing: 

7 ‘‘SEC. 1349. OVERSIGHT OF LITIGATION. 

8 ‘‘(a) IN GENERAL.—The Administrator shall oversee 

9 litigation arising under a contract for flood insurance sold 

10 under this title that is conducted by a Write Your Own 

11 company to ensure that the Write Your Own company and 

12 counsel for the company— 

13 ‘‘(1) represent the national flood insurance pro14 gram reasonably and in accordance with guidelines 

15 established by the Administrator and applicable eth16 ical requirements; and 

17 ‘‘(2) conduct litigation in a cost-effective man18 ner. 

19 ‘‘(b) DENIAL OF REIMBURSEMENT.—The Adminis20 trator may deny reimbursement for litigation expenses 

21 that the Administrator determines to be unreasonable, ex22 cessive, contrary to guidance issued by the Administrator, 

23 or outside the scope of any arrangement entered into with 

24 a Write Your Own company. 


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1 ‘‘(c) DIRECTION OF STRATEGY.—The Administrator 

2 may direct litigation strategy for claims arising under a 

3 contract for flood insurance sold by a Write Your Own 

4 company. 

5 ‘‘(d) SUBSTITUTION.—The Administrator may 

6 promptly take any necessary action to be substituted for 

7 the Write Your Own company in any action arising out 

8 of any claim arising under a contract for flood insurance 

9 sold by a Write Your Own company if the Administrator 

10 determines that— 

11 ‘‘(1) there is a conflict of interest between a 

12 Write Your Own company and the national flood in13 surance program; or 

14 ‘‘(2) such substitution is in the best interest of 

15 the United States.’’. 

16 (f) EARTH MOVEMENT.—Section 1306 of the Na17 tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 

18 amended by adding at the end the following: 

19 ‘‘(e) EARTH MOVEMENT.—A flood insurance claim 

20 filed under this title for damage to or loss of property may 

21 not be denied based on the earth movement exclusion in 

22 the Standard Flood Insurance Policy if the claim is filed 

23 as the result of a flood, including a claim for damage to 

24 or loss or property caused by earth movement that was 

25 caused by a flood.’’. 


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1 (g) APPEALS PROCESS.—Section 205 of the Bun2 ning-Bereuter-Blumenauer Flood Insurance Reform Act 

3 of 2004 (42 U.S.C. 4011 note) is amended— 

4 (1) by striking ‘‘Not later than’’ and inserting 

5 ‘‘(a) IN GENERAL.—Not later than’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(b) REVIEW OF APPEALS.— 

8 ‘‘(1) CLARITY.—The Director shall ensure that 

9 the appeals process established under subsection (a) 

10 has clear rules, forms, and deadlines. 

11 ‘‘(2) NOTIFICATION UPON INITIAL DENIAL OF

12 CLAIM.—The Director shall ensure that a claimant 

13 is provided with the rules, forms, and deadlines de14 scribed in paragraph (1) at the time a claim is first 

15 denied in full or in part, including— 

16 ‘‘(A) the effective date of the denial; 

17 ‘‘(B) a justification for the denial, includ18 ing supporting documentation; 

19 ‘‘(C) the date on which the period of limi20 tation for instituting an action against the Ad21 ministrator on the claim under section 1341 of 

22 the National Flood Insurance Act of 1968 (42 

23 U.S.C. 4072) will end; and 

24 ‘‘(D) a point of contact through which the 

25 claimant can directly discuss an appeal with a 


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1 representative of the Federal Emergency Man2 agement Agency. 

3 ‘‘(3) NOTIFICATION UPON DENIAL OF AP4 PEAL.—If the Administrator denies an appeal filed 

5 by a policyholder, the Administrator shall include 

6 with the notice of denial an explanation of the pol7 icyholder’s legal options for further challenging the 

8 denial.’’. 

9 SEC. 603. REPORTS TO CONGRESS. 

10 (a) DEFINITION.—In this section, the term ‘‘Task 

11 Force’’ means the National Flood Insurance Program 

12 Transformation Task Force established by the Federal 

13 Emergency Management Agency. 

14 (b) REPORT TO CONGRESS ON ACCOUNTABILITY FOR

15 DEFRAUDING POLICYHOLDERS.—Not later than 90 days 

16 after the date of enactment of this Act, the Secretary of 

17 Homeland Security shall submit to Congress a report on 

18 specific actions the Department of Homeland Security will 

19 take to identify individuals and private entities that have 

20 engaged in activities to defraud policyholders under the 

21 National Flood Insurance Program following Superstorm 

22 Sandy and prevent those individuals and private entities 

23 from continuing to receive Federal funding through— 

24 (1) contracts with, or employment by, a Write 

25 Your Own company; or 


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1 (2) employment by the Federal Emergency 

2 Management Agency. 

3 (c) REPORT TO CONGRESS ON RECOMMENDATIONS

4 OF THE NFIP TRANSFORMATION TASK FORCE.—Not 

5 later than 1 year after the date of enactment of this Act, 

6 the Administrator shall submit to Congress a report that 

7 describes— 

8 (1) the recommendations of the Task Force for 

9 reforming the National Flood Insurance Program; 

10 (2) a timeline for implementing the rec11 ommendations of the Task Force; and 

12 (3) any recommendations of the Task Force 

13 that require additional legislation. 

Æ 


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